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Govt reveals NZ's four new fuel phases - what they include and the criteria to move up levels

Author
Jamie Ensor ,
Publish Date
Fri, 27 Mar 2026, 12:03pm
Photo / Mark Mitchell
Photo / Mark Mitchell

Govt reveals NZ's four new fuel phases - what they include and the criteria to move up levels

Author
Jamie Ensor ,
Publish Date
Fri, 27 Mar 2026, 12:03pm

The Government has unveiled four new phases to reflect New Zealand’s response to risks to fuel security, as well as the six criteria that will be used to assess a move up or down.

Finance Minister Nicola Willis announced the changes alongside Associate Energy Minister Shane Jones at midday today.

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

This is where New Zealand is currently and reflects actions the Government has been taking in recent weeks. For example, it announced on Monday it would change fuel specifications to match Australia’s.

The second phase would see more active coordination between the Government and industry, with the aim to shore up fuel supply and support efforts to reduce demand.

This would include a stronger push for voluntary uptake by households and businesses of conservation measures as well as a reduction in the public sector’s use of fuel where appropriate.

There are stronger interventions at the third and fourth phase. These would include 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,” Finance Minister 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.”

New Zealand’s Fuel Response Plan 2026

Phase 1: Watchful

What’s happening

The fuel market is operating effectively and fuel is available nationwide. However, prices are rising due to global market changes.

This phase is about supporting the market and making sure Kiwis have good information.

What the Government will do

  • Monitor fuel stocks and shipments
  • Publish twice-weekly stock updates
  • Monitor global supply and maintain engagement with international partners
  • Coordinate closely with industry players to ensure markets continue to work well
  • Understand and prepare to reduce its own demand
  • Provide information to the public, including on how to reduce fuel bills

What you can do

  • Access fuel as you normally would
  • Regularly check MBIE’s website
  • Be aware of EECA’s information on fuel-saving measures

Phase 2: Precautionary

What’s happening

The market continues to operate effectively and fuel is available nationwide, but there are signs of significant supply disruptions.

This phase is about shoring up supply, closer coordination between Government and industry, and managing demand.

What the Government will do

  • Continue to monitor fuel stocks and shipments, and publish twice-weekly stock updates
  • Work with international partners to keep fuel flowing to New Zealand
  • Coordinate closely with key industry players to ensure fuel is effectively distributed
  • Review regulations to enable reduced fuel use
  • Implement a public sector fuel response plan
  • Provide information to the public on how to reduce fuel bills and conserve fuel in the national interest

What you can do

  • Access fuel as you normally would
  • Consider combining trips, and/or other modes
  • Regularly check MBIE’s website
  • Follow EECA guidance on additional measures to help save fuel day-to-day

Phase 3: Managed (Under consultation)

What’s happening

Supply is tighter and the Government is making sure fuel gets where it is needed most.

This phase uses Government powers, implemented by industry, to protect critical services. Measures will be lifted as soon as conditions allow.

What the Government may do

  • Prioritise uninterrupted supply to life-preserving services, and help direct fuel supply to others according to priority, for example via purchasing limits
  • Provide regular public updates, listen to industry and communities, and adjust accordingly
  • Regularly assess how things are going, and get back to Phase 2 as soon as possible

What you can do

  • Be confident that ambulances, fire services, hospitals, and food supply chains are covered
  • Follow any purchase limits
  • Check the daily update to understand how long measures will be in place

Phase 4: Protected (Under consultation)

What’s happening

There is a bigger or sustained supply disruption, and there are formal rules to ensure fuel is distributed fairly.

This phase is about protecting critical services, and making sure everyone else gets a share. Measures will be lifted as soon as conditions allow.

What the Government may do

  • Prioritise uninterrupted supply to all life-preserving services, and more strictly direct how fuel is distributed to other customers
  • Maintain daily public updates, listen to industry and communities, and adjust as appropriate
  • Regularly assess progress, and get back to Phase 2/3 as soon as possible

What you can do

  • Know that essential services like food supply and emergency response are fully protected
  • Use service stations as directed
  • Check the daily update

In a factsheet delivered by the Government, both Phase 3 and 4 are considered “under consultation”.

The Fuel Security Ministerial Oversight Gorup will be responsible for deciding whether a shift between phases is appropriate. There are six assessment criteria that will be considered:

The criteria are:

  • 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.

Willis said there currently no need for fuel restrictions, but the Government is “planning carefully, acting early and making sure New Zealand is well positioned to respond, whatever the global environment brings”.

“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.”

As the Herald detailed two weeks ago, New Zealand’s National Fuel Plan contains four levels of escalation to respond to a disruption to fuel supply, depending on the severity of the situation.

Finance Minister Nicola Willis and Associate Energy Minister Shane Jones during the post-Cabinet press conference in the Beehive Theatrette, Parliament, Wellington, New Zealand, March 23, 2026. Photo / Mark MitchellFinance Minister Nicola Willis and Associate Energy Minister Shane Jones during the post-Cabinet press conference in the Beehive Theatrette, Parliament, Wellington, New Zealand, March 23, 2026. Photo / Mark Mitchell

However, the plan is not specifically designed just for a situation where supply from overseas has been compromised. Instead, it is a generic plan that could be used in “many events”, like fuel supply being disrupted by earthquakes, sabotaged pipes or damaged road networks.

Last week, the Herald reported that the Ministry of Business, Innovation and Employment (MBIE) was providing advice to ministers on relevant considerations for a move to Level 2.

Willis also said at the time that she didn’t anticipate having to move up levels “until we see any actual disruption in ships being able to come to New Zealand”.

“I am advised further mitigations under the National Fuel Plan are at least three to four weeks away.”

Speaking in the House on Thursday, Willis said there would be no change to the fuel response phase overnight, “although it is the case that within a response phase, we will continue to take additional actions, some of which we will detail tomorrow”.

“Tomorrow, we will also provide more information about the criteria we will use to assess when a change in the response phase is required ... these will include things like changes in the amount of fuel in the country.”

She said it was the Government’s aim to avoid needing to move to Level 3 or 4, which is where mandatory fuel demand constraints could be used, like restricting fuel outlet opening hours or restricting sales.

According to the latest update from MBIE, accurate to Sunday, there are 48.7 days of petrol stock either in-country or on the water, 46.4 days of diesel and 53.4 days of jet fuel.

Jamie Ensor is the NZ Herald’s chief political reporter, based in the press gallery at Parliament. He was previously a TV reporter and digital producer in the Newshub press gallery office. He was a finalist in 2025 for Political Journalist of the Year at the Voyager Media Awards. 

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