He yesterday called for comments by February 2 on a report commissioned by the Economic Development Ministry which found New Zealand needed approximately 500,000 tonnes of additional storage to fully comply with its obligation, as an IEA member, to hold 90 days of oil stocks.

The report also concluded that the cost of meeting this requirement would equate to less than one cent per litre at the pump.

"Our economy is heavily dependent on oil imports. New Zealand is at the end of a long external supply chain and has few immediately available supply alternatives. A significant disruption to international oil supplies, however unlikely, would have serious consequences for us," said Hodgson.

“Under IEA rules, holding more than 90 days of stocks would enable us to draw from them rather than introducing demand constraints in the event of a supply disruption.

“Cabinet has decided that oil companies should be responsible for providing adequate stocks, not the taxpayer. I'm keen to continue working constructively with oil companies to meet the 90 day reserve level as cost effectively and quickly as practicable."