Dawn Chorus: NZ's fuel fate in South Korea's hands

Briefly in the news in Aotearoa’s political economy around housing, climate and poverty on Wednesday, March 11:

• The immediate fate of New Zealand’s economy is in the hands of South Korean fuel refinery owners and the South Korean Government this morning.

• South Korea is considering banning all exports of refined fuel to protect its own economy in the event of an extended closure of the Strait of Hormuz.¹

• South Korea now provides 48% of New Zealand’s fuel imports, which are now all imported directly since the closure of the Marsden Point refinery four years ago.²

• A report³ for the Government last year on fuel security found a 50% reduction in fuel imports for an extended period was likely to cut GDP by as much as 1%.

• A ministerial group is due to meet today to discuss the fuel situation, with no talk yet of rationing, although Associate Energy Minister Shane Jones says things will get serious by May if there is no opening of the Strait of Hormuz. He has not mentioned the South Korean situation⁴.

• Auckland Council will debate housing intensification today, including how to cut housing capacity from 2 million to 1.6 million, and where that will happen.⁵

• Wellington’s real estate market is in turmoil because of long delays getting LIMS for first home buyers, The Post-$⁶ reports this morning. Paying subscribers can see more below the paywall fold & hear more in the podcast above.

South Korea may ban fuel exports to New Zealand

A man hold gasoline at SK Corporation’s refinery in South Korea. It is South Korea’s biggest refiner, the fourth largest refiner in Asia and is also the World’s second largest single complex oil refinery. (Photo Illustration by Chung Sung-Jun/Getty Images)

Argus Media, an oil industry publication, reports from sources in South Korea’s Government and refining industry that South Korea is considering joining China in banning exports of refined fuels to protect its own economy.