Government details phased fuel rationing plan for potential supply crisis

The government has expanded its ‘National Fuel Plan’, outlining a four-phase framework for managing fuel shortages, with New Zealand currently at phase one.

Phase 2 would encourage conservation across households, businesses and the public sector, while phase 3 would prioritise fuel for life-preserving services and phase 4 would involve stricter controls on distribution; the latter stages remain under consultation.

Movement between phases would be determined by a ministerial oversight group based on fuel stocks, supply chain conditions and other risk indicators, including export restrictions, declining reserves or disruptions to distribution.

Finance Minister Nicola Willis said there is no immediate need for restrictions but the plan ensures preparedness for global disruptions, particularly those linked to Middle East conflict, while Shane Jones said the framework has been developed with industry cooperation to maintain supply and respond if future access to fuel becomes constrained.

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

“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.”

Image credit: Engin Akyurt