New NZ fuel phases: All you need to know & where we’re at

The government has outlined a detailed plan to manage fuel supplies in New Zealand, introducing a four-phase system that would guide conservation and distribution if shortages occur. Modeled on the Covid-19 alert framework, the plan currently keeps the country at phase one, with normal, undisrupted supply levels, Willis said in an announcement today.

Under phase two, households, businesses, and public agencies would be encouraged to conserve fuel. The measures for the higher phases are still being finalised through consultation.

Phase three would prioritise fuel for essential, life-preserving services, while phase four would involve stricter government intervention in fuel distribution.

“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.

Decisions to move between phases are made by a ministerial oversight group, using data on fuel stocks, distribution restrictions, and supply chain conditions.

Willis said the move comes in place to ensure New Zealand has the fuel we need to protect jobs, livelihoods and the wider economy. 

"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.”

Minister Shane Jones, responsible for fuel security, said the plan was developed in collaboration with the fuel industry. He said this move is critical as 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.”

The government outlined several criteria for moving between phases, including:

• Export restrictions imposed or relaxed by New Zealand refineries
• Changes in domestic fuel stock levels of plus or minus three days from the last published update
• Notifications from fuel companies that they may be unable to meet future orders
• Breaches, or warnings of imminent breaches, of minimum storage obligations
• Significant policy changes in Australia or from the International Energy Agency
• Major disruptions to regional fuel 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,” Willis said.