New Zealand currently at 'watchful' phase of government's plan, as details of fuel phase escalation, management and conservation plan released

The Government has provided details on how the country will manage and conserve fuel if the situation worsens.

Finance Minister Nicola Willis and Associate Energy Minister Shane Jones made the announcement from Parliament on Friday. with Willis said the measures; “reflect the specific potential risks New Zealand could face as a result of major fuel disruption driven by the conflict in the Middle East”.

“New Zealand has sufficient fuel stocks, but we are planning for potential scenarios where obtaining future supply could become increasingly difficult," Jones said.

Phases

The phases can apply differently to petrol, diesel and jet fuel if needed.

The country is currently at phase one - deemed the ‘watchful’ level which entails monitoring and strengthening diplomatic ties for supply.

Phase two would have more “active coordination between government and industry to shore up fuel supply and support increased efforts in demand reduction”, and a stronger push for voluntary fuel conservation and a public sector reduction in fuel use.

“If disruption increases, the plan allows for stronger interventions at Phases 3 and 4 including prioritising fuel for emergency services, freight and food supply chains, and key industries that underpin New Zealand’s economy,” Willis said.

“We have the gift of time,” Willis said, so would be consulting for the next two weeks with industry, fuel users, and local government on phase three and four implementation.

Moving phases

The Government’s  Fuel Security Ministerial Oversight Group will decide whether the country needs to move phases based on any changes to six of the following criteria:

1. export restrictions, if any of New Zealand’s source refineries introduce or relax export restrictions
2. changes to New Zealand’s fuel stock levels of plus or minus three days since the most recent published update
3. a fuel company informs the government that they are unlikely or unable to fill future orders
4. a breach, or a notification of an imminent breach, of the minimum storage obligations
5. any significant policy changes in Australia or from the International Energy Agency
6. a significant disruption to regional distribution.

Fuel saving

In phase one, the the Energy Efficiency and Conservation Authority will launch an information campaign about voluntary ways New Zealanders can conserve fuel and save money. Moving up phases, phase two would encourage fuel reduction, in the hope that more intensive measures in phase 3 can be avoided.