Iran war: What will trigger restrictions on fuel
Friday, 27 March 2026
Finance Minister Nicola Willis has revealed what will trigger restrictions on fuel under the national fuel plan.
“We do have to be prepared,” Willis told reporters at Parliament.
“We are working now to have a proactive plan in place that should the worst happen. We are prepared. We are ready.”
There are be four phases to the plan, and if any one of six criteria were met the Fuel Security Ministerial Oversight Group would consider a change - but not necessarily take one.
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Associate Energy Minister Shane Jones, who was also at the media briefing in Parliament, told media the Government's focus was not just on being proactive but that they would leave 'no stone unturned' in making sure they can get fuel stocks.
The criteria are:
export restrictions,
changes to New Zealand’s fuel stocks,
a fuel company reports it was unlikely to fill future orders,
a breach or imminent breach of the minimum stockholding obligations,
significant policy changes from Australia or the International Energy Agency and
a significant disruption to regional distribution.
No need for restrictions now
New Zealand is still in phase one of the national fuel plan and Willis told media that there was no need for fuel restrictions at the moment.
She said fuel companies had not reported to the Government any risk of fuel orders not being able to be fulfilled and there was a good level of confidence in fuel orders up till the end of May.
Phase one in the plan was about monitoring and providing information to the public about reducing fuel bills. People were urged to access fuel “as you normally would” but also to be aware of fuel-saving measures.
In phase two there is more emphasis on people economising on fuel, perhaps by combining trips. The Government would at this stage bring in a public sector fuel plan, which is has asked the Public Service Commission to prepare.
In phases three and four of the plan the Government would introduce priority bands to ensure people had access fuel.
Willis expected alert levels to be progressed in sequence, rather than skipped, and the goal was to avoid ever getting to phase three or four.
“Our goal is to be doing enough to source the supply of fuel internationally so that does not become necessary.”
Willis noted that the final details of phases three and four were still under consideration.
Advertising campaign to start
As well as the public service having to consider how to use less fuel, the Energy Efficiency Conservation Authority (EECA) would be releasing an ad campaign starting on Saturday to give New Zealanders advice on how to save fuel.
People would be able to see the campaign on social media and hear it on the radio.
It would include tips and tricks such as checking tire pressure, driving at steady speeds, reducing vehicle idling and lightening car loads.
In Friday’s media stand up Willis said it was estimated that if people did all of the suggested measures they could save an extra 20% of fuel in their petrol tank, though she noted this was not the Government telling people what to do.
“It is a case of providing practical information that people may want to use to save fuel and money.”
A return to the home office?
The Government was not completely against the idea of people working from home if there was a jump in phases, Willis said.
“What we do anticipate is that as we move into a further phase people might make their own choices about working from home.”
She said there was the possibility that in the plan’s second phase an advertising campaign could include some “encouragement” to employers to consider allowing their staff to work from home.
The Government was drawing the line at taking the same approach for schools, she said.
'We do not want to see children outside of the classroom as occurred during Covid.'
She said the Ministry of Education was talking to schools about potentially extending school bus services to children whose parents could no longer drive them to school, at higher phases.
Possible support for health workers and public transport
There was consideration under way to how the Government could help home support health workers that needed to travel for their role.
Willis said the Health Minister was looking at the issue and it was something they were considering advice on.
“We do fully acknowledge the impact that increased fuel prices are having on those workers.”
She said these workers would be prioritised under any rationing at higher phases.
On the topic of public transport Willis said that the Government did provide public transport providers with hundreds of millions of dollars of subsidies a year but hinted at the possibility of more money for users.
“If we were to take a temporary, targeted and timely approach, there may be some targeting that we take out to ensure that the public transport users get the targeted support they need.”
Opposition wants the Government to keep the flow of information moving
Labour leader Chris Hipkins told media on Friday afternoon that New Zealanders would want to know how fuel rationing would work on phases three and four.
'I hope the Government is working on those at pace, I understand that they're having to do things in sequence, but I think those are the sorts of questions people want to hear answers on sooner rather than later.'
Hipkins said it would not hurt for New Zealanders to do what they could to conserve fuel.
The party leader said he would not criticise the Government for changing the National Fuel Plan.
'You can always plan a hypothetical scenario when it actually hits in the reality that you do need to be willing to change that.'
He wanted the Government to get the flow of information regarding the crisis out to the public as soon as they can.
“I want them to move as quickly as they possibly can. I think the public want them to move as quickly as they possibly can. That's my main message.”
On the topic of education, taking children out of school should be the last port of call, Hipkins said.