When rationing kicks in: These are the levels in the four-phase fuel plan
Friday, 27 March 2026
The Government has revealed the details of its National Fuel Plan, in light of the fuel crisis driven by the war in Iran.
Carefully called “phases” - not alert levels - the plan lays out the circumstances that could trigger a move to any prioritisation or rationing measures.
No changes have been made on Friday, and it doesn’t look likely that we will need phases 3 or 4 at this stage, the Government’s fact sheet said.
But with this 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.
“We recognise there are things that are outside of our control in terms of how global supply chains could be disrupted,” Willis said.
“That is why we are working now to have a proactive plan in place that should the worst happen. We are prepared. We are ready.”
So, here’s everything you need to know about when we might move up the phases, and what that would mean for accessing fuel.
NZ is currently in Phase 1 - ‘Watchful’
This phase consists of what we’ve been seeing from the Government - monitoring fuel stocks, twice weekly publishing of fuel data, coordinating with industry to ensure the market is working well, and preparing to reduce the Government’s own demand.
The public at this stage is advised to act normally, including accessing fuel as you normally would, but keep an eye on Government websites for any fuel saving tips.
Next was Phase 2 - ‘Precautionary’
If we move to Phase 2, it will mean supplies are continuing to flow, “but there would be a heightened risk of global or regional disruption developing,” Willis explained on Friday.
It would mean the Government and industry coordinate more closely to ensure fuel supply remained stable, but they would also be asking New Zealanders to conserve fuel where they could.
That means considering combining trips or moving to other modes of transport and follow guidance from the Energy Efficiency and Conservation Authority about saving fuel day-to-day.
On the Government’s end, they would be coordinating with industry about how fuel was distributed, implementing a fuel response plan for the public sector and reviewing regulations to enable reduced fuel use.
Phase 3 was dubbed ‘Managed’
This is where it gets serious. This is where fuel supply is getting tighter and the Government will need to start implementing rationing measures to make sure everyone that needs fuel can get it.
Officially it will “prioritise uninterrupted supply to life-preserving services”, and help direct remaining supply to others based on a priority system. It’ll also start providing daily public updates.
This stage was still being consulted on, but the prioritisation would likely go like this - in order of priority:
Band A: life-supporting services – uncapped supply – eg emergency services, courts, corrections, hospitals, lifeline utilities and defence.
Band B: economically-important services – eg critical transport services (eg road freight for supermarket and grocery supply chains, international air links), food supply and primary production during time-critical periods.
Band C: essential services – eg public transport, essential infrastructure maintenance, and rural GPs and district nurses.
Band D: other commercial customers – this comprises all other commercial and business fuel uses
Band E: general retail sales to consumers.
Phase 4 was the most extreme option
The plan for stage four was still being consulted on as well, but it would mean the disruption to supply was significant and sustained.
The priority would be on protecting critical services.
To achieve that, the Government would become strict about where fuel was distributed to ensure all life-preserving services could access it. They may also set rules for when and how customers could purchase fuel.
The goal would be to return to Phases 2 or 3 as soon as possible.
What could prompt a phase change?
Under this plan, different fuel types could be at different levels depending how much petrol, diesel and jet fuel were in the country.
A move either up or down the levels could be prompted by any one of these six different metrics:
export restrictions from any of the countries which New Zealand sources fuel from
if the amount of fuel stock drops or increases by three days worth of supply
a fuel company flags they can’t fill future orders
a breach or potential breach of minimum storage obligations
policy changes from Australia or the International Energy Agency
significant disruption to regional distribution
Ministers will be basing their decisions on the following factors, a Government statement outlining the plan said:
whether fuel is getting to NZ as expected – eg whether countries that supply our fuel have restricted exports, or if shipments are delayed
what fuel companies and airlines are saying about their experiences sourcing fuel
how fuel stocks are tracking
what’s happening internationally – eg whether key partners like Australia are taking action
whether specific communities are being affected – eg whether fuel stations in a specific region are consistently struggling to get supply
Not all fuels are equal
It’s important to note that different fuel types could move to different phases depending on how much petrol, diesel and jet fuel were in the country. So diesel could move to phase 2 while jet fuel remained at phase 1, for example.
New details build on an original plan
To avoid any confusion - these phases build on the National Fuel Plan released by the Government in 2024.
“The [2024 plan] imagined a range of different circumstances in which fuel could be constrained, anything from a civil emergency, a weather event, through to this particular issue … so it's appropriate that our plan responds exactly to the crisis that's forming in front of us,” Willis said.