The New Zealand cabinet has decided that oil companies, not taxpayers, should be responsible for building up the country's reserves.

A government-commissioned report recommended that oil companies be required to invest hundreds of millions of dollars, mainly on new storage.

But BP said that would not be acceptable to its international shareholders and the company was now reviewing its planned investment program for New Zealand.

Meanwhile Shell New Zealand spokesman Simon King has said if the proposal was adopted, it was likely petrol prices would rise by 1c a litre.

"In terms of additional storage requirements that would have to be built, that cost is going to be passed on to the motorist eventually,” he said.

Shell said the NZ government should lobby the IEA for dispensation from the 90-day requirement and some other countries did have some flexibility within the rules.