September 17, 2026

The NZ fuel supply crisis and what it means for businesses

News

Rising fuel prices are putting pressure on NZ businesses, particularly those in trades, transport and primary industries. This guide explains how Bay of Plenty business owners can manage costs, review pricing, claim vehicle expenses and plan for further increases.

Rising pump prices in NZ are hitting trades, transport, and primary industries hardest. A business owner’s practical response may fall into any of the following: protecting margins through clear pricing and contract clauses, maximising deductions on business vehicle use, and stress-testing cash flow against further increases. Here’s what Bay of Plenty business owners can do now.

The news says that NZ fuel supply is holding. But your fuel card statement keeps landing higher every week. You priced that Mount Maunganui renovation in August and the Te Puke spray contract in winter. Now you’re weighing it up: pass the cost on, absorb it, restructure or ride it out.

Quick summary

The NZ fuel supply crisis affects small businesses through higher costs. It comes in the form of higher fuel prices, freight, and supplier bills.

As at 13 September 2026, New Zealand held about 51 days of petrol and 48 days of diesel, while 91 petrol averaged $3.25 a litre on 18 September. Trades, transport and orchard businesses feel it first, especially because their utes, trucks and tractors are dependent on diesel. Supplier price rises follow close behind.

The practical route that any business may take is three-fold: fair pricing with clear fuel surcharge clauses, logbook or fuel card records behind every vehicle claim, and a cash flow forecast that allows for further rises.

Global crude oil prices may be out of your hands, but your pricing, your records and your cash buffer aren’t.

What’s happening with the NZ fuel supply right now

The government’s official position is that NZ fuel supply is stable. Our current stocks are still above minimum requirements, and the country is still in Phase 1 of the National Fuel Response Plan. New Zealand entered Phase 1 on 27 March 2026, and MBIE reports that people and businesses have used less fuel since then.

Here are the latest fuel stocks from MBIE’s weekly stock and shipping update:

Fuel (as at 13 September 2026)	In the country	On ships heading here	Total days’ cover
Petrol	29.6 days	21.5 days	51.1 days
Diesel	25.5 days	22.9 days	48.3 days
Jet fuel	38.1 days	4.4 days	42.5 days

These figures aren’t real-time, as MBIE updates them every Wednesday. A government diesel reserve at Marsden Point sits on top.

At the moment, it seems that the pressure is more on the price, rather than the supply. The average price of 91 reached $3.25 a litre on 18 September, up nearly 25 cents in four weeks. Diesel averaged $2.96 below its April peak of about $3.80, with prices generally are expected to stay high.

How does the NZ fuel supply crisis affect small businesses?

High fuel prices are felt by small businesses primarily through supplier price rises, your own vehicle costs and freight.

In an MYOB survey of SME decision-makers reported in March, 61% said fuel was critical to operations. The biggest hit came through supplier price increases (52%), then fleet costs (47%), freight (41%) and supply chain disruption (30%).

That’s how fuel prices affect small business owners who never fill a tanker. The cost arrives inside other invoices. The business impact of the NZ fuel crisis also compounds through supply chains, with each supplier passing on the costs to you.

Business type	Where fuel hits	What to watch
Trades and construction	Ute fuel and material deliveries	Fixed-price quotes signed months ago
Transport and freight	Diesel, a major input cost	Contracts with no fuel adjustment
Orchards and contractors	Tractors, sprayers and packhouse freight	Costs landing before pool payments arrive

The NZ petrol price impact may be in the headlines, but the reality is, diesel is what most working vehicles run on. Of all the fuel prices NZ business owners track, it’s the one closely monitored.

What you need to do now

Your best response to high fuel prices is to price fairly, claim what you’re owed, and plan for further rises.

Review your pricing and fuel surcharge clauses

Fuel surcharges are legal in NZ, but the Commerce Commission expects them to cover the rise in your fuel bill and nothing else. Customers also need to see them before they pay. Using a surcharge to pad your margin or cover other operational costs risks breaching the Fair Trading Act.

Check the fuel surcharge clauses in your customer and supplier contracts. On longer jobs, a surcharge clause linked to a published fuel price lets pricing move both ways. Bring it down when fuel prices fall.

Fuel costs, business deductions, and records

Fuel used for business purposes is deductible, but you need to show how much of your vehicle use is for business. IRD accepts three approaches: a logbook, claiming 25% of running costs, or adding up actual costs. You need to stick with one method for as long as you own that vehicle.

For the 2025-26 year, IRD’s kilometre rates are $1.20 per km for petrol and $1.30 for diesel, for the first 14,000 km. IRD sets each year’s rates after 31 March, so this year’s figures won’t be known until 2027.

Fuel cards make vehicle expenses easier to prove since all fuel purchases are logged against a vehicle. If you run several vehicles, a fleet manager fuel report shows which ones cost the most. Keep it with your other business expenses.

Managing fuel costs in a trades business

In any business, a small price adjustment adds up fast. A crew using 300 litres of diesel a week pays $30 more for every 10 cent rise, or $1,560 a year before GST.

Run your cash flow forecast at today’s prices, then at 20 and 40 cents a litre higher.
Add a short validity period to every quote.
Group jobs by area to cut kilometres between sites.
Check whether tax pooling could ease a provisional tax bill that lands beside a big fuel month.
Think long term. A more efficient vehicle or smarter routes keep saving you money after prices ease.

How we’ll help

Ingham Mora has supported Western Bay of Plenty businesses for over 60 years, from Katikati to Te Puke.

We’ll model the impact on your margins and cash flow, review your pricing, and check your vehicle claims. Our tax planning support shows you what tax is coming, so a big fuel month doesn’t collide with a tax bill. Because we’re independent, the advice fits how your business actually runs.

Frequently asked questions

How many days of fuel supply does NZ have?

As at 13 September 2026, New Zealand had 51.1 days of petrol, 48.3 days of diesel and 42.5 days of jet fuel. That includes fuel onshore and on ships heading here.

Is there actually a fuel shortage in NZ?

No. MBIE’s weekly updates show fuel arriving on schedule and stocks well above the legal minimum. For most businesses, the problem is high fuel prices, not empty pumps.

What happens if NZ runs out of fuel?

The Fuel Response Plan steps in well before that point. Under the updated plan, Phase 4 would give emergency and health services priority access. Food and freight would keep uncapped access under fuel-saving plans, while the public would face limits at the pump.

Where is NZ getting fuel from?

Mostly from refineries in Asia. RNZ reports that about 80% comes from South Korea and Singapore. New Zealand has imported all its refined fuel since the Marsden Point refinery became an import terminal in 2022.

Are fuel prices going up in NZ?

Yes, for now. Petrol rose nearly 25 cents a litre in the four weeks to 18 September, reaching $3.25. The AA expects high prices for at least another six weeks, possibly until Christmas.