Prime Minister Christopher Luxon says New Zealand has "sufficient fuel supplies" amid war in the Middle East, but "things could get worse before they get better".
"Hope is not a plan," he said, and was joined by Finance Minister Nicola Willis to discuss measures the country now needed to take in case of a "prolonged conflict".
Willis said this afternoon that New Zealand has 41.3 days worth of petrol, 47 days of diesel and 49 days of jet fuel.
A Ministerial Oversight Group has been set up to monitor the war, that began with a United States-Israeli strike on Iran on February 28 this year.
Iran's response has included the closure of the Strait of Hormuz, a key transportation channel for Middle Eastern energy exports.
Strikes overnight hit Iran's part of the world's largest gas field. Iran has vowed revenge, listing energy targets in Saudi Arabia, the United Arab Emirates and Qatar as potential targets.
In New Zealand, drivers have been queueing up at petrol stations as an escalation in the Iran war sends the price of crude up even further and the AA has warned of further price hikes. Some petrol stations had run out of fuel again today.
The brent crude price surged past $US110 a barrel on Thursday.
"Like all New Zealanders, we hope that the conflict is ending quickly - but hope is not a plan, and so we are preparing for the worst-case scenario where the conflict is prolonged."
Luxon said though national fuel supplies were okay for now, the government would consider whether to move New Zealand up a fuel escalation level next week.
"New Zealand has sufficient fuel supplies. But I do want to be straight with New Zealanders: things could get worse before they actually get better. And [as] a responsible government, we need to take a prudent response and be very prepared."
Even if there was a ceasefire tomorrow it would take a while for supply chains to return to normalcy, he said, and the government was preparing a range of scenarios.
"We have sufficient fuel supplies, but even in the unlikely event the ceasefire is announced tomorrow, the effects on global supply chains and fuel supplies won't be immediately resolved.
"And it's on that basis, as a responsible government ... we have tasked our officials to work on scenarios based on at least an eight- to 12-week response.
"Kiwis are incredibly resilient, but the last few years have been very difficult for households and businesses across the country. We've been knocked around by the (Covid-19) pandemic, then the recession, high inflation, the tariffs and now the Middle East conflict.
"We can't control global events, but we can control our response to them."
Luxon said there had been "very good behaviour" as Kiwis largely refrained from panic-buying fuel.
Willis said supply chain issues caused by the conflict could continue even after the war ends, and the government was actively exploring "other options" for sourcing fuel.
She sought to reassure New Zealanders the government was taking the situation seriously in case future fuel supplies were disrupted.
"We live in challenging times. We're not just sitting back and saying, well, the fuel supplies are fine now. They are fine now... but we are actively preparing for scenarios where they are disrupted in future."
It was likely fuel prices would continue to rise, she said, and reiterated the government would only provide targeted relief to those who most need it. It has ruled out reducing fuel tax.
Willis said the government was talking with other countries regarding accessing refined fuel and keeping in close contact with fuel companies to stay on top of any challenges.
It was also engaging with industry to find alternative sources of supply and Cabinet was open to relaxing fuel specifications, if required.
Luxon said the government was not considering changing its policy on Russian oil sanctions in the face of the developing fuel crisis.
The government will give twice-weekly fuel supply updates, with the next due on Monday.
Across the Tasman, Prime Minister Antony Albanese urged Australians to avoid panic buying of petrol and diesel, which he said had led to shortages in some rural regions, and stressed the nation's fuel supply levels remained stable.
Albanese said the federal government had already taken steps to ensure an uninterrupted supply of fuel into the country, Reuters reports.
"Our fuel supply is currently secure. However, I want us to be over-prepared," he told reporters today, calling on Australians to buy only what they needed.
"My message to Australians is please do not take more fuel than you need. That is how you can help, that's the Australian way."
- Allied Media
