Campaign targets 20% drop in fuel use
The New Zealand government has released details of its National Fuel Plan, outlining a four-phase rationing framework should the country’s fuel supplies come under threat from disruption in the Middle East.
Modelled on the COVID-19 alert level system, the plan establishes escalating measures depending on the severity of any supply shortfall. New Zealand is currently at phase one, while the higher phases remain under consultation.
Finance minister Nicola Willis and associate energy minister Shane Jones presented the update at a briefing at Parliament on Friday.
“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.
How the phases would work
Under the plan, phase two would encourage households, businesses, and the public sector to conserve fuel. Phase three would see fuel directed towards life-preserving services, while phase four would introduce stricter controls over distribution.
A ministerial oversight group, drawing on fuel stock, restriction and supply chain data, would decide when to move between phases.
The criteria for changing phases include export restrictions from source refineries, a shift in New Zealand’s fuel stock levels of ±3 days, a fuel company flagging it cannot fill future orders, a breach of minimum storage obligations, or significant policy changes from Australia or the International Energy Agency.
Public campaign and behavioural changes
From Saturday, the Energy Efficiency and Conservation Authority will run a public campaign aimed at helping New Zealanders reduce their fuel use by up to 20%. Willis said the advertisements would offer practical tips, such as switching off idling vehicles.
“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 said. “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.”
At phase two, the government may also encourage working from home, promote public transport use and discourage non-essential road trips.
Schools to remain open
However, Willis drew a firm line at closing schools.
“There is one place we draw a line, though. We do not want to see children outside of the classroom as occurred during COVID,” she said. “This generation has already had years of learning disrupted by the COVID experience that had a marked impact on their achievement, and we will be taking every step necessary to keep kids learning in the classroom.”
Supply resilience and global sourcing
Jones said the plan had been developed in cooperation with the fuel industry and that importers were capable of sourcing supply from outside the Middle East if needed, pointing to the United States, Japan, and Malaysia as existing sources.
“New Zealand has sufficient fuel stocks, but we are planning for potential scenarios where obtaining future supply could become increasingly difficult,” Jones said.
The plan comes amid escalating global fuel market volatility linked to the ongoing Middle East conflict, particularly disruptions around the Strait of Hormuz, a key transit route for roughly 20% of global oil supply.
In New Zealand, officials have warned that while supply remains stable, the country holds around 50 days of fuel reserves, leaving it exposed to prolonged disruption.
Petrol prices have climbed above $3 per litre in recent weeks, prompting relief measures such as temporary cash support for households. Air New Zealand has raised fares and suspended its earnings outlook due to surging jet fuel costs.
