Focus area 2: Domestic resilience
Our domestic fuel supply relies on critical infrastructure, which can limit our ability to distribute fuel around the country during disruptions.
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The nature of our fuel import and storage infrastructure means there are many potential critical single points of failure in our liquid fuel supply chain.
We rely on port infrastructure, pipelines, storage terminals and roading networks to distribute imported liquid fuels stored at key import terminals to end users across the country. A disruption to critical infrastructure could limit our ability to move fuels around the country.
The National Fuel Plan 2024 outlines our approach to preparing for and responding to domestic fuel disruptions. It defines roles and responsibilities, details potential response actions for specific scenarios – such as diverting ships, relaxing fuel specifications and implementing demand constraint measures. It also provides a framework template to guide the development of Regional Fuel Plans, helping to ensure consistency across the regions. The National Fuel Plan is reviewed and updated every 3 years, with the next update scheduled for 2027.
The effectiveness of our response to fuel emergencies depends on preparation, practice and coordination across the fuel supply chain. The Fuel Sector Coordinating Entity, comprised of government and industry representatives, oversees fuel emergency planning and leads responses to major disruptions. The National Fuel Plan is tested every year during national or fuel-specific exercises. The Fuel Sector Coordinating Entity is also supporting advice on the new Emergency Management Bill, to identify opportunities to improve readiness and response arrangements for the fuel sector.
In a sustained fuel disruption, it may be necessary to ration fuel and prioritise supplying essential services. We will review the Petroleum Demand Restraint Act 1981 to ensure it allows the necessary measures to be implemented if fuel rationing is required.
The fuel pipeline from Marsden Point to Auckland is a key part of our fuel distribution system, particularly for jet fuel. From 1 November 2026, fuel companies will be required to hold a minimum of 10 days of jet fuel cover at 80% operations at Auckland Airport to improve regional resilience against this single point of failure.
We will review the MSO regime in 2030. This will consider the level or strategic location of fuel stocks and will identify whether additional location specific obligations are required to ensure our fuel stocks continue to deliver regional resilience.
The Fuel Security Study identified the ready availability of fuel trucks as a key measure to mitigate the impact of temporary pipeline or infrastructure outages. Fuel companies are best positioned to optimise their trucking fleets and ensure the availability of drivers.
In addition to disruptions from infrastructure failures, our fuel supply can be disrupted if there are issues with the quality of the fuel we import. Importers and the government monitor the quality of our imported fuel. This allows us to detect and identify the source of off-specification fuel early to minimise the risk of a fuel disruption event.
Our actions
Underway
2.1: Monitor fuel-related risks on the National Risk Register, as part of delivering the National Risk and Resilience Framework.
2.2: Test the National Fuel Plan at least once a year through the National Exercise Programme, where relevant, and participation in fuel sector exercises.
2.3: Implement location-specific minimum stockholding obligation for jet fuel at Auckland Airport.
2.4: Monitor the quality of automotive and marine fuel to ensure imported products meet our quality, performance, and safety requirements.
Planned
2.5: Review and update the National Fuel Plan in 2027.
2.6: Review the minimum stockholding obligation regime in 2030, including whether changes are required to deliver regional resilience.
2.7: Engage with fuel companies to ensure there is sufficient alternative distribution capacity (for example, fuel trucks and drivers) to respond to disruptions.
2.8: Review the Petroleum Demand Restraint Act 1981.
2.9: Identify opportunities to improve readiness and response arrangements for the fuel sector through the development of the Emergency Management Bill.
Questions for consultation
7. Do you believe that Focus area 2 addresses the challenges the fuel sector is facing? Why / why not?
8. Do you believe actions under Focus area 2 will improve New Zealand’s fuel security? Why / why not?
9. Are there any additional actions under Focus area 2 the Government should do to enhance domestic resilience of critical infrastructure?