Today, Prime Minister Jacinda Ardern announced the Government will cut 25 cents a litre off fuel for three months as part of a cost of living package aimed at giving Kiwi families immediate relief through the current global energy crisis triggered by the war in Ukraine.
“We cannot control the war in Ukraine nor the continued volatility of fuel prices but we can take steps to reduce the impact on New Zealand families,” Jacinda Ardern said.
“There’s no silver bullet that will fix the cost of living, but we have a plan and are implementing a range of measures that together will help to make a difference.
“The global energy crisis has quickly become acute which is why the Government has stepped in to cut fuel duty. Today’s changes will reduce the cost of filling up a 40 litre tank of petrol by over $11, and for a 60 litre tank, over $17.
Fuel excise duties and road user chargers will be reduced by 25 cents each and the price of public transport will be halved as part of a package of measures to reduce transport cost pressures on middle and low income households.
“We are also making it cheaper for those who catch a bus or a train. In the long term we need to build greater resilience into our transport system so we are less vulnerable to spikes in the price of petrol, but for now halving the cost public transport will provide some families with an alternative to filling up the tank,” the Prime Minister adds.
April 1 will see a number of permanent increases to household incomes, with 60% of families earning more from Working for Families, and increases to superannuation and benefits.
Finance Minister Grant Robertson said the fuel excise cut is the most efficient and direct way to help Kiwis now.
“We are amid a global energy shock and a spike in prices at the pump is being felt by the whole world, including more than a 15 percent increase in the cost of 91 here in New Zealand between the start of the year and last week,” Robertson say.
“Reducing FED is the quickest move we can make and it will be confirmed by an Order in Council that will come into effect tonight.
“We do need to recognise that petrol prices are expected to continue to rise. The Russian invasion of Ukraine is continuing to undermine and de-stabilise global energy markets and, added to the other inflationary pressures the world has due to COVID supply chain disruptions, this is sadly not over yet.”
Cabinet will continue to review the situation over coming months and will also outline in the coming days the means by which they will reverse the changes being announced today.
Click here to read the full media release.
