The Government has updated New Zealand's national fuel plan, as uncertainty around fuel supply due to the war in the Middle East continues.
The updated plan, announced by Finance Minister Nicola Willis, outlined "four clear phases" that responded "proportionately" to the risks to New Zealand’s fuel security.
“The plan is designed to keep fuel flowing where it matters most, relying on market settings wherever possible, and only stepping in further if supply is genuinely at risk,” Willis said.
Phase one, where the country is currently placed, focused on monitoring global developments.
It would involve easing restrictions to increase optionality (like changing fuel specifications), monitoring stocks and shipments, watching global supplies, publishing twice-weekly stock updates, coordinating with the industry, and providing information to the public. Under phase one, Kiwis could access fuel as they normally would.
Phase two would see "more active" coordination between the Government and industry to "shore up fuel supply and support increased efforts in demand reduction".
During Phase two, the market continues to operate as normal, but there are signs of "significant supply disruptions".
It would involve monitoring stocks and shipments, twice-weekly stock updates, working with international partners, close coordination with the industry, reviewing the regulations to enable reduced fuel use, the implementation of a public sector fuel response plan, and public information on how to reduce fuel bills and conserve fuel in the national interest
"At Phase 2 there would be a stronger push for voluntary uptake by households and businesses of measures that help to conserve fuel, and a reduction in the public sector’s use of fuel where appropriate.
“The measures at Phases 1 and 2 are designed to prevent a move to more restrictive measures. This plan is about staying ahead of the risk, managing pressure in the system and keeping the economy moving,” Willis said.
Phases three and four would allow for "stronger interventions" if disruption increases. This included prioritising fuel for emergency services, freight and food supply chains, and key industries that underpin New Zealand’s economy.
Phase three was for when supply is tight and aimed at protecting critical services.
It involves prioritising uninterrupted fuel supply to life-preserving services, and allocating fuel to others through measures such as purchasing limits. Regular public updates and assessments would also occur, with the Government listening to industry and communities.
Under phase three, ambulances, fire services, and food supply chains would be covered.
The still-under-consultation phase four was designed for a "bigger or sustained" supply disruption, with formal rules for fuel distribution.
It would prioritise fuel to all life-preserving services, with stricter direction to others.
These would be prioritised into five bands, which were:
- Band A: life-supporting services – uncapped supply – e.g. emergency services, courts, corrections, hospitals, lifeline utilities and defence
- Band B: economically important services – e.g. critical transport services (e.g. road freight for supermarket and grocery supply chains, international air links), food supply and primary production during time-critical periods
- Band C: essential services – e.g. public transport, essential infrastructure maintenance, and rural GPs and district nurses
- Band D: other commercial customers – this comprises all other commercial and business fuel uses
- Band E: general retail sales to consumers.
Under phase four, there would be daily updates, with assessments based on advice from the industry and communities.
Kiwis would likely have to "use service stations as directed".
“While there is currently no need for fuel restrictions, the public can be assured that the Government is planning carefully, acting early and making sure New Zealand is well positioned to respond, whatever the global environment brings.”
The Fuel Security Ministerial Oversight Group would be responsible for deciding when to shift phases based on six criteria that included:
- export restrictions – if any of New Zealand’s source refineries introduce or relax export restrictions
- changes to New Zealand’s fuel stock levels of plus or minus three days since the most recent published update
- a fuel company informs the government that they are unlikely or unable to fill future orders
- a breach, or a notification of an imminent breach, of the minimum storage obligations
- any significant policy changes in Australia or from the International Energy Agency
- a significant disruption to regional distribution.
Fuel market 'working normally'
The Government said the fuel market was "working normally", and supplies were continuing to arrive, which was why New Zealand was still at phase one.
"At this stage, we are not experiencing the types of sustained, direct supply impacts that would affect everyday access to fuel in New Zealand. Monitoring and planning are underway to ensure we are ready for any changes in international conditions."
Fuel supply continues to flow into the country, and domestic demand is being met.
The Government said it would introduce a public information campaign to help Kiwis find "sensible" and "voluntary" ways to conserve fuel.
It said that since the start of the war, there have been no factors that may result in a phase change.
"Fuel companies have been asked to provide immediate updates to officials, and there have been no reports of issues with past or future shipments."
New Zealand would only move to phases three and four "if absolutely necessary".
NZ must 'plan for all senarios'
Willis said it was important for the Government to be "prudent" and plan for all scenarios so Kiwis and businesses could be prepared.
She said the Government would engage with stakeholders, including industry, fuel users, and local government, over the next two weeks on the implementation details of phases three and four.
Associate Minister for Energy Shane Jones said the Government had worked with the fuel industry to develop the plan.
“This is critical because the plan relies on fuel companies cooperating and working constructively with the government.
“My expectation is that we continue to work together as the situation evolves. The industry will play a key role in providing advice to the Ministerial Oversight Group if and when we are required to consider a move between phases."
Support package
On Tuesday, the Government outlined its moves to cushion the blow of surging fuel prices in a package aimed at working families.
About 143,000 lower-income working families with children will receive an extra $50 a week from April 7 through a temporary boost to the in-work tax credit.
It would also expand eligibility to about 14,000 additional working families, who will receive the credit at a reduced rate.
The increase will last for one year, or until the price of 91 octane petrol drops below $3 a litre for four consecutive weeks, according to the Government.
Fuel levels
Energy officials yesterday released additional fuel stock data, showing 13 ships are either already at domestic ports or are en route to New Zealand — quelling some fears that stocks were being depleted too rapidly.
The out-of-cycle update revealed six vessels were already discharging or moving between domestic ports — details that had not appeared in Wednesday's regular release.
Wednesday's figures showed in-country fuel stocks at their lowest point in March, with diesel cover sitting at 18.1 days and with only two ships listed as arriving in the next two weeks. Only one of the two vessel was reported to be carrying diesel.
Concerns had been raised about declining in-country diesel stocks.
Yesterday's clarifying update used the same overall underlying data — a snapshot from Sunday midnight — but added a new category breaking out "on-water" vessels already at domestic ports, and expanded the shipment window from two weeks to three.
It showed the six vessels discharging or moving between New Zealand ports were carrying 11.6 days of diesel, 19.8 days of petrol cover, and 11.7 days of jet fuel.
These were not counted as being "in-country".
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