The Government isn’t saying what fuel purchase caps it would place on the public under its most extreme fuel plan phase, claiming it depends on the level of fuel reduction it is seeking.
It comes as ministers reveal how “spot fines” could be dolled out to excessive fuel consumers at phase four of the Government’s fuel alert level system, which ministers are at pains to stress is “highly unlikely” to come about.
Prime Minister Christopher Luxon, alongside Finance Minister Nicola Willis and Resources Minister Shane Jones, outlined the much-anticipated detail behind the more restrictive phases of its four-phase fuel plan, which was launched in March in response to the global fuel supply challenges imposed by the United States/Israel war with Iran.
Speaking from Parliament on Monday, Luxon reiterated New Zealand’s fuel supply chains remained intact with importers having confirmed orders through to July and confidence orders through August would be fulfilled.
However, following consultation with importers and fuel consumers, the Government has fleshed out its four-phase framework to specify how fuel supplies would be managed at each phase.
New Zealand was currently in phase one, where no restrictions were in place. A shift to phase two would be made if a short-term fuel supply disruption over a couple of weeks was realised, leading to the Government encouraging sensible fuel use.
Phase three would be enacted amid a months-long disruption. Willis, who has been leading the Government’s fuel crisis response, said the Government had changed its view and opted not to impose restrictions at this level, instead focusing on using the country’s fuel reserves and establishing voluntary fuel use restrictions.
At phase four, which would be prompted by a sustained disruption to the flow of critical goods and services, fuel consumers would be split into four groups:
Willis couldn’t state what purchase limit would be imposed at phase four, saying it was dependent on the extent of necessary reduction.
She acknowledged “spot fines” as well as auditing or compliance checks – likely run through the Ministry of Business, Innovation and Employment – could be utilised if people were purchasing excessive levels of fuel.
However, Willis was optimistic New Zealanders would “do the right thing”.
“We’re going to have to be pragmatic and actually if we’re in phase four and the whole world has had a massive disruption in the availability of fuel, we would be asking New Zealanders to apply common sense.”
She noted there could be exceptions made to account for fuel access barriers for rural communities, but didn’t provide further detail.
Willis added fuel consumption would naturally decrease as the price escalated.
Tagged on to almost every statement and response from Willis, Luxon and Jones was their insistence that New Zealand reaching phase four was “highly unlikely”; a term, or a variation of it, that was used upwards of a dozen times throughout Monday’s press conference.
Willis indicated the Government’s modelling, which she accepted was about as reliable as the Middle East conflict was predictable, put the odds of New Zealand going to phase four as a single-digit probability.
Labour leader Chris Hipkins welcomed further detail from the Government but criticised its fuel plan by characterising its phases as “do nothing, do nothing, do not very much, panic”.
He acknowledged it was unlikely New Zealand would reach phase four but felt the Government’s high-trust model was unrealistic.
“If we do, it will be panic because it is simply not credible what they’re saying that it should all just work on goodwill. That’s not a realistic plan.”
Adam Pearse is the Deputy Political Editor and part of the NZ Herald’s Press Gallery team based at Parliament in Wellington. He has worked for NZME since 2018, reporting for the Northern Advocate in Whangārei and the Herald in Auckland.