Report into fuel pipeline fiasco reveals 'vulnerable' fuel supply system

Three fuel company giants are being asked to front up millions of dollars in infrastructure investment following 2017's fuel pipeline fiasco.

A report into the crisis, which saw a mass fuel shortage, has discovered that the system is vulnerable. 

A ten-day fuel fiasco, caused by a rogue digger driver. A ruptured pipeline, and as revealed on Tuesday, a flawed fuel supply system. 

"The report writers have put through 21 very clear recommendations that we now have to consider," says Minister of Energy and Resources, Megan Woods.

Having been damaged by a digger in 2014, Auckland's main fuel pipeline ruptured three years later.

The rupture caused major shortages at petrol stations and as the sole-supplier of jet fuel to Auckland airport, it forced more than 100 flights to be cancelled.

"Airlines were restricted to 30 percent of their usual fuel allocation, so that caused huge disruption," says BARNZ chief executive Justin Tighe-Umbers.

One of the major recommendations made in the report is for urgent investment into increasing the number of fuel storage tanks near Auckland Airport, so there would be 10 days worth of jet fuel stockpiled, at any one time. 

The upgrade would mean doubling the current five-day stockpile. But boosting the storage comes at an estimated cost of $100 million. 

The report says this cost should be paid for by the oil companies who own the pipelines.

"There is a public good element to resilience... but nevertheless we believe it is the oil companies responsibility to invest in extra storage," the report's co-author, Roger Blakely, said on The AM Show.

To that, BP says it's committed to playing its part and has funds set aside.

Z says it's willing to invest where it makes commercial sense.

Mobil says cost-benefit analysis is required, or else this could result in increased travel costs for Kiwi consumers.

"At the end of the day, the consumers, either you and me at the petrol pump or Air NZ at the Auckland International Airport, are going to have to pay for the improved resilience of the system," Professor of Energy and Resource Economics Basil Sharp told Newshub.

But if the suggested investment hasn't been made by June, the Government has been advised to take action - before the next digger driver does.  

Newshub.