Government Announces Fuel Response Plan
The New Zealand Fuel Response Plan has been announced today by the Minister of Finance and Minister of Energy.
The plan includes four phases with the aim to minimise disruption as fuel supply continues to be affected due to the conflict in the Middle East. These range from normal supply through to protected distribution in the event of severe disruption. Tools have been outlined to prioritise essential services if the need arises.
More details will be developed over the coming weeks to illustrate issues relating to specific sectors. Consideration is being given to jet fuel, diesel (including marine fuels) and petrol supply with differing steps in the plan. This could mean we see different phases applied to different fuels at different times subject to availability of supply and essential use.
Further information can be found at the below links.
Middle East conflict and New Zealand's fuel stocks | Ministry of Business, Innovation & Employment
Fuel plan to protect economy amid disruption | Beehive.govt.nz
Hobbs Global will continue to monitor the situation on a day-by-day basis, as we have been doing for a number of weeks now. At this stage, while a response plan has been set, indications are that fuel supply is stable (albeit continuing to increase in price) and normal usage patterns should still be followed.
The volatile nature of the market means we can expect fuel prices to remain high for airfreight, sea freight and domestic trucking movements with various Emergency Fuel/Bunker Surcharges in place.
If you have any questions about how this may affect your supply chain, please reach out to the Hobbs Global Team.