The Government has released updated fuel security planning in response to growing global uncertainty linked to the conflict in the Middle East, stressing there is no immediate need for fuel restrictions but that contingency planning is being strengthened.
“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,” Finance Minister Nicola Willis said.
She said ensuring New Zealand had reliable access to fuel was critical to protecting jobs, livelihoods and the wider economy amid global disruption.
1News explains what the National Fuel Security Plan is, why it’s been updated now, and what it could mean if global conditions worsen.
Watch: Nicola Willis, Shane Jones give national fuel plan update.
Phase 1: Watchful
This is the current baseline setting. Fuel is available nationwide and the market is operating normally, but prices may be rising due to global market shifts or international supply pressures.
At this stage, the focus is on transparency and preparation. The Government will closely monitor fuel stock levels, incoming shipments, and international supply conditions, while working with fuel companies, airlines and other key players to ensure the market continues to function smoothly.
Twice‑weekly public stock updates will be published, and officials will stay engaged with international partners. The Government will also prepare to reduce its own fuel use if needed and provide information to the public on how to lower fuel costs.
Consumers are being told to buy fuel as normal, avoid panic buying, and stay informed through MBIE updates and EECA fuel‑saving advice.
PM says the relief is targeted at the genuinely squeezed middle lower income working New Zealanders. (Source: 1News)
Phase 2: Precautionary
Under Phase 2, fuel is still available nationwide and the market remains functional, but there are signs of significant disruption, such as delivery delays or slower restocking in some regions.
This phase involves closer coordination between the Government and industry to shore up supply and manage demand responsibly. Stock levels and shipments continue to be monitored, with twice‑weekly public updates remaining in place.
Officials may review and remove non‑essential regulations to allow reduced fuel use and will activate a public‑sector fuel response plan to manage government demand. Public messaging will place greater emphasis on conserving fuel in the national interest.
The public is again advised to access fuel as usual but to consider combining trips, using alternative transport where possible, and following EECA guidance to reduce fuel consumption.
Phase 3: Managed
Under consultation
Phase 3 would be triggered if supply tightens further and fuel needs to be directed to where it is most needed. The Government would use formal powers, implemented by industry, to protect critical services.
Fuel supply would be allocated based on clearly defined priority tiers. At the highest level, life-supporting services would receive unrestricted access, including emergency services, courts, corrections, hospitals, utilities, and defence.
Next in priority would be economically critical sectors, such as food supply chains, freight, and international air transport. This would be followed by services essential to daily functioning, including public transport, infrastructure maintenance, rural general practitioners, and district nursing.
Lower in the hierarchy would be other commercial and business fuel uses, while general retail fuel sales would receive the lowest priority.
Purchase limits could be introduced, and regular public updates would outline stock levels, incoming shipments and how long measures are likely to remain in place. Officials would aim to step back to Phase 2 as soon as conditions allow.
The public would be asked to follow any limits, buy only what is needed, and trust that essential services are being protected.
Phase 4: Protected
Under consultation
Phase 4 would apply if there is a major or prolonged fuel disruption. Formal rules would be put in place to ensure fuel is distributed fairly and that critical services remain fully protected.
The Government could more strictly control how fuel is allocated, including where and how customers are allowed to purchase it. Life‑preserving services would be prioritised, with regular public updates provided and advance notice given before any rule changes.
Officials say measures would be adjusted quickly if they are not working as intended, and the goal would remain to return to Phase 2 or 3 as soon as supply conditions improved.
Who decides when phases change?
Decisions to move between phases would be made by the Fuel Security Ministerial Oversight Group consisting of senior ministers, including Willis and Jones.
These would consider a move when there was a change in any of the following criteria:
- 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.
Ministers could place different fuels under different phases – for example, diesel at Phase 2 while petrol remains at Phase 1. Any decision to change phases would be publicly explained, with officials emphasising moves would only be made when clearly necessary.
For now, the Government said it did not expect to need Phases 3 or 4, but that having the plan in place ensured New Zealand was prepared if circumstances change.
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