Jet fuel is currently available nationwide and we are not seeing any supply shortages. However, because aviation is critical to travel, freight, tourism, and emergency services, being prepared for changing supply conditions is essential.
The Jet Fuel Response Plan was developed with input from the aviation and fuel sectors and forms part of the National Fuel Response Plan(external link). It outlines a phased approach focused on monitoring supply and demand, strengthening coordination across the aviation system, and being prepared to introduce proportionate measures if needed.
Phased approach
There are four phases of the Jet Fuel Response Plan:
- Phase 1 – focuses on monitoring supply conditions and engaging with industry.
- Phase 2 – increases data sharing, coordination, and demand management to improve readiness.
- Phase 3 – introduces a more coordinated national approach, including an industry-led jet fuel allocation model if supply risks increase.
- Phase 4 – applies during a serious and prolonged disruption, with fuel prioritised for critical and essential services.
New Zealand is currently in Phase 1, with the Government already monitoring conditions and many airlines already adjusting schedules and operations in response to higher fuel prices.
Like the Fuel Response Plan, the Government will make decisions on whether to move to a new phase based on advice and evidence, and with that advice being informed by industry input.
Working with industry
In Phase 2, the Government will continue to work with industry to share more frequent and detailed data, improve supply and demand forecasting, and run joint scenario tests. This approach supports early identification of emerging supply risks and enables coordinated decision making if a move to Phase 3 becomes necessary.
Jet fuel allocation
If supply conditions change and intervention is needed, jet fuel could be allocated temporarily. This would only be considered from Phase 3 and only if there is a clear risk to ongoing supply. (Specifically, and in addition to the existing criteria under the fuel plan, phase 3 can be triggered if jet fuel levels are projected to drop and remain below Minimum Stockholding Obligations levels for five days.)
An industry-led approach, informed by government oversight, is the preferred model for managing jet fuel demand. Similar models have been used during past supply events and are considered workable by airlines and fuel suppliers.
The Government would oversee the allocation model, setting allocation levels and duration, monitoring how it operates, and working closely with industry to ensure it is applied fairly and consistently.
Any allocation approach would be fair and transparent, with early notice provided wherever possible to support planning and minimise disruption. Allocation settings would be lifted as soon as supply conditions improved. Emergency and defence services would be excluded from allocation settings.
Serious and prolonged disruption
A move to Phase 4, while unlikely, would indicate a serious and sustained disruption to jet fuel supply. In this phase, the Government would take a more active role in allocating jet fuel to prioritise essential services. Further work will be undertaken on these settings.
More information
Questions and Answers – Jet Fuel Response Plan [PDF, 197 KB]