March 27, 2026

National Fuel Plan unveiled, NZ currently in Phase 1

nz fuel plan 1
Photo source: Screenshot from Stuff NZ video

The government has unveiled the specifics of its National Fuel Plan amid the fuel crisis caused by the conflict in Iran.

Described as “phases” rather than alert levels, the plan outlines the conditions that could prompt the implementation of prioritisation or rationing measures.

With the plan, “The public can be assured that the government is planning carefully, acting early and making sure New Zealand is well positioned to respond,” Finance Minister Nicola Willis said.

As of Friday, no changes have been made, and the government’s fact sheet indicates that phases 3 or 4 are unlikely to be needed at this time.

Phases of New Zealand’s National Fuel Plan

Phase 1 – ‘Watchful’

New Zealand is currently in this phase. It involves the government monitoring fuel stocks, publishing fuel data twice a week, coordinating with industry to keep the market functioning smoothly, and preparing to reduce its own fuel demand.

The public is advised to carry on as usual, filling up and using fuel normally, while keeping an eye on government websites for any fuel-saving tips.

Phase 2 – ‘Precautionary’

If New Zealand enters Phase 2, supplies would still be flowing, but the risk of global or regional disruption would be higher. In this phase, the government and industry would work more closely to keep fuel supply stable, while also encouraging New Zealanders to conserve fuel wherever possible.

Phase 3 – ‘Managed’

At this stage, fuel supplies become tighter, and the government may need to introduce rationing measures to ensure everyone who needs fuel can access it. Officially, it will “prioritise uninterrupted supply to life-preserving services” and allocate the remaining fuel to others according to a priority system. Daily public updates would also begin.

While still under consultation, the likely order of prioritisation would be as follows:

Band A – Life-Supporting Services: Uncapped supply for critical services such as emergency services, courts, corrections, hospitals, lifeline utilities, and defence.

Band B – Economically Important Services: Fuel for vital transport and supply chains, including road freight for supermarkets and groceries, international air links, food supply, and time-sensitive primary production.

Band C – Essential Services: Includes public transport, essential infrastructure maintenance, and rural GPs and district nurses.

Band D – Other Commercial Customers: Covers all remaining commercial and business fuel uses.

Band E – General Retail Sales: Fuel sold to the general public.

Phase 4

Phase 4 represents the most extreme option. Still under consultation, this stage would be triggered if fuel disruptions were significant and prolonged.

The focus would be on protecting critical, life-preserving services. To achieve this, the government would strictly control fuel distribution and may set rules on when and how customers could purchase fuel. The ultimate goal would be to restore conditions to Phase 2 or 3 as quickly as possible.

A shift up or down the phases could be triggered by any of the following six factors:

  • Export restrictions from countries that supply fuel to New Zealand
  • Changes in fuel stock of three days’ supply, either up or down
  • A fuel company indicating it cannot fulfil future orders
  • A breach, or potential breach, of minimum storage obligations
  • Policy changes from Australia or the International Energy Agency
  • Significant disruptions to regional fuel distribution
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