National Fuel Plan explained: NZ's four-phase system revealed

Finance Minister Nicola Willis has outlined what would trigger the government to raise levels in their four-phase National Fuel Plan, which would introduce new fuel management restrictions on Kiwi motorists.

New Zealand is currently at Phase 1. The Government says work is being done in the background to monitor fuel stocks, but there is enough fuel supply to not consider any changes currently.

Willis said she is confident that New Zealand will continue to receive its usual fuel orders until the end of May. Willis also outlined six criteria that could trigger a change to New Zealand’s level. They 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.

National Fuel Plan - what happens at each phase?

Phase 1:

Life continues as normal for Kiwi motorists. Government will continue to monitor fuel supplies and all motorists will be encouraged to conserve fuel.

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 the Energy Efficiency & Conservation Authority's (EECA) information on fuel-saving measures

Phase 2:

There are still no restrictions for motorists at Phase 2, but the new level acknowledges the government is now concerned about our ability to get the fuel we need on-shore.

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:

Phase 3 introduces the first fuel restrictions on Kiwi motorists. The Government would prioritise supplying essential services and could put purchase limits in place for regular customers.

Willis said at this stage, life-preserving services and "economically critical services" , would have prioritised access. Willis added that the Government is going to launch public consultation about what those essential services should be.

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:

We would reach Phase 4 if there was sustained disruption to New Zealand’s fuel supply. 

The Government would continue to prioritise life-preserving services and 'strictly control' the distribution of fuel. Petrol stations would be under stricter access for Kiwi motorists.

Willis said there would be daily updates about fuel supply and restrictions at Phase 4.

No exact limit restrictions for Phase 3 or 4 have been released yet.

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