How the Government will respond if fuel supply runs low

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Words: Kyle Cassidy
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Published 27 March 2026

The New Zealand Government has detailed how it would respond to a potential fuel shortage, outlining a staged National Fuel Plan designed to manage supply and prioritise essential services if disruptions worsen.

Announced by Finance Minister Nicola Willis and Associate Energy Minister Shane Jones, the plan introduces a four-phase framework — similar in structure to the country’s former Covid-19 alert levels — aimed at ensuring fuel remains available where it is needed most.

New Zealand is currently operating under Phase 1, meaning there are no restrictions in place and supply continues as normal. However, the Government says it is preparing for a range of scenarios as global fuel markets remain volatile.

Under Phase 2, the next step up, households, businesses and public sector organisations would be encouraged to reduce fuel consumption. Higher phases introduce more direct intervention, with Phase 3 prioritising fuel for essential, life-preserving services, and Phase 4 involving stricter controls over distribution.

Decisions to move between phases would be made by a ministerial oversight group, based on factors such as stock levels, international supply conditions and domestic distribution risks.

“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,” Willis said.

“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.”

Jones said the updated framework had been developed in close cooperation with suppliers, highlighting the importance of industry collaboration in any response.

“This is critical because the plan relies on fuel companies cooperating and working constructively with government,” he said.

“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.”

Triggers for escalating the plan include changes to fuel stock levels, export restrictions from overseas refineries, supply shortfalls reported by gas companies, or disruptions to regional distribution networks. Policy changes in Australia or actions by international bodies such as the International Energy Agency could also influence decisions.

“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.

Alongside the updated plan, the Government is also rolling out a public awareness campaign aimed at reducing fuel consumption. Led by the Energy Efficiency and Conservation Authority, the campaign will offer practical advice to help motorists stretch each tank further.

“The ads are based on the idea of stretching every tank by up to 20 percent,” Willis said.

“They will give practical tips for how that can be achieved.”

Simple measures — such as avoiding unnecessary idling — are among the actions being promoted as part of the initiative.

“Those ads will run over the coming days, and they are designed in the first instance to provide New Zealanders with information about how they can conserve their own fuel use,” Willis explained.

“If we were to move to phase two, you would expect that this advertising campaign would step up another level, which is to say it would become more directive.”

While there is no immediate cause for concern, the Government says the framework ensures New Zealand is prepared to respond quickly if global fuel supply conditions deteriorate.