Fuel plan to protect economy amid disruption

The Government has today released updates to the National Fuel Plan to respond to fuel supply uncertainty driven by the conflict in the Middle East, Finance Minister Nicola Willis and Associate Energy Minister Shane Jones say.

"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," Nicola Willis says.

"Ensuring New Zealand has the fuel we need to protect jobs, livelihoods and the wider economy is our first priority in managing the impact of global fuel disruption.

"The updates released today give practical effect to the National Fuel Plan established in 2024 and reflect the specific potential risks New Zealand could face as a result of major fuel disruption driven by the conflict in the Middle East."

The plan outlines four clear phases that respond proportionately to the risks to New Zealand's fuel security. These phases are assessed separately for petrol, diesel and jet fuel to reflect their different functions and challenges.

At each phase is a set of measures that would be taken in response to escalating risks to New Zealand's fuel security.

The Fuel Security Ministerial Oversight Group will be responsible for deciding whether a shift between phases is appropriate, with the group required to consider a move when there is a change in any of the six assessment criteria. These criteria will be used to assess a movement up or down a response phase.

The criteria are:

1. export restrictions - if any of New Zealand's source refineries introduce or relax export restrictions
2. changes to New Zealand's fuel stock levels of plus or minus three days since the most recent published update
3. a fuel company informs the government that they are unlikely or unable to fill future orders
4. a breach, or a notification of an imminent breach, of the minimum storage obligations
5. any significant policy changes in Australia or from the International Energy Agency
6. a significant disruption to regional distribution.

"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," Nicola Willis says.

Phase 1 of the plan focuses on monitoring global developments, easing restrictions to increase optionality (such as changing fuel specifications), providing information to fuel consumers of measures to support voluntary reductions in fuel use, and working with fuel companies to keep fuel moving efficiently across the country.

Phase 2 would see more active coordination between government and industry to shore up fuel supply and support increased efforts in demand reduction.

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.

If disruption increases, the plan allows for stronger interventions at Phases 3 and 4 including prioritising fuel for emergency services, freight and food supply chains, and key industries that underpin New Zealand's economy.

"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," Nicola Willis says.

"It is prudent, however, to plan for all scenarios so that everyone - the Government, industries, businesses and the general public - is prepared.

"Therefore, we will be engaging with stakeholders over the next two weeks including industry, fuel users, and local government on the implementation details of Phases 3 and 4."

Shane Jones, who has responsibility for fuel security, says the Government has worked closely with industry on developing the updates to the National Fuel Plan.

"This is critical because the plan relies on fuel companies cooperating and working constructively with 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.

"New Zealand has sufficient fuel stocks, but we are planning for potential scenarios where obtaining future supply could become increasingly difficult."