Government considering buying more fuel to bolster critical stocks
Monday, 30 March 2026
The Government is considering buying fuel itself and adding extra storage capacity itself as the Iran War continues to imperil future supplies.
Finance Minister Nicola Willis said Cabinet had on Monday agreed to explore additional options to guard against the risk of disrupted fuel supply and to secure additional fuel security.
The Government was now actively seeking proposals for New Zealand refined fuel imports on arrangements that would support additional purchases stocks through to June.
The latest Ministry of Business, Innovation and Employment figures showed New Zealand had about 59 days of petrol, 54.5 days of diesel and 50 days of jet fuel.
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Those numbers took into account fuel in the country, near New Zealand and stocks three weeks away as of last Wednesday. It was an increase on the level of stocks the ministry provided last week.
Prime Minister Christopher Luxon referenced his time as the chief executive of Air New Zealand when talking about the fuel crisis at Monday’s post Cabinet press conference.
“I can tell you it ain’t pleasant trying to run an airline with 30% of the fuel you need for several months.”
The Government wanted to make sure it had “maximum flexibility” and “maximum optionality” should the situation deteriorate in two months’ time.
Treasury forecasters believe inflation will go ‘much higher’
Willis said Treasury had provided advice that it believed inflation would go “much higher” this year and stay out of its target band. The caveat on that was the fact there was so much changing quickly, she said.
Due to this Willis said she would not provide exact details of the forecasts until the budget.
Treasury had advised there was now a “broader range” of scenarios it needed to consider with inflation forecasting. Those included secondary effects as a result a result of the fuel crisis.
“New Zealanders are already seeing that with price surcharges and other things going up,” Willis said.
No change in phase
Willis told media that after the latest fuel stock updates and policy developments in Australia consideration was going to assessing New Zealand's phase in the fuel plan.
New Zealand remains in phase one of the national fuel plan, but there are preparations to move to phase two if it becomes necessary.
Officials found there was no risk to fuel supply as a result of the latest developments.
Diesel is now on average more expensive than 91 octane petrol at the pump, according to price comparison site Gaspy.
Last week the Government unveiled the latest version of the national fuel plan - its blueprint for how to deal with the different stages of an oil crisis.
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.