The Government is introducing a new scheme that will make up to $1.2 billion of bank loans available to help businesses reduce or eliminate their dependency on gas.

Finance Minister Nicola Willis said New Zealand had seen some gas-dependent manufacturing businesses close with the cost of energy a major factor.

“By assisting others to move to alternative fuel sources, the Government can help preserve jobs, improve New Zealand’s economic outlook, and leave more gas available to firms who have no viable alternative to gas.”

The Gas Transition Loan Guarantee Scheme will also have $48m set aside in Budget 2026 for potential losses from the scheme.

Energy Minister Simeon Brown said $5.9m would go to the Energy Efficiency and Conservation Authority to work with businesses exploring options to transition away from gas.

“Businesses meeting the threshold for inclusion in the scheme may be using gas for things like water heating, eg food processors and brewers, or heating interiors eg hotels and aged care facilities, or commercial growers using greenhouses. Thousands of businesses use more than 1000GJ of gas a year which is the threshold for eligibility for the loan scheme.

“To access this finance, businesses must achieve genuine gas savings of at least 15% while maintaining or increasing production, ensuring the focus is on growing the economy and protecting jobs, not shrinking output.”

Earlier today, the Ministry of Business, Innovation and Employment released its latest fuel stocks update, showing levels of diesel had risen while petrol and jet fuel had dipped slightly.

The update said New Zealand had a total of 53.1 days’ worth of petrol either in country or on the way, compared with 54 days noted in last week’s update.

Jet fuel had also dipped from 55 days’ worth to 53.7 days.

Diesel stocks had risen from 46 days’ worth to 49.1 days.

In a statement from the ministry accompanying the data, it said overall fuel stocks “remained well above minimum requirements and within normal ranges, with regular shipments continuing to arrive as expected”.

“Fuel importers have provided good confidence through confirmed orders to late June, with planned orders extending into August.”