A reduction in petrol taxes will make petrol 25 cents a litre cheaper from tomorrow, the Government announced.
In response to rapidly rising costs of living caused by the pandemic and the Russian invasion of Ukraine, the Government is introducing a range of economic responses to reduce the impact on New Zealand households.
At the post-cabinet conference on Monday, Prime Minister Jacinda Ardern said fuel prices rose by the highest amount on record in the last week, with 91 rising by 6 percent.
To address this, the fuel excise tax and road user charges would be reduced by 25 cents for three months.
Ardern said this will save New Zealanders between $11.50 and $17.25 per tank of fuel, depending on the type of car.
All public transport fees will also be halved for the next three months, Ardern said.
“Our primary focus is on how we can give kiwis in the long term options that mean that they have more energy security, so that we aren’t at the whim of global energy prices.
“Now, more than ever, is the time to make our transition towards more sustainable transport options and greater energy security.”
Ardern said this is not a transition that can be made in a week or a month, which is why short-term fuel price reductions have been introduced.
On April 1, other measures will begin to help create significant increases in the take home incomes of the majority of kiwi families.
- Working For Families benefits will be raised by an average of $20 a week - affecting 346,000 families, nearly 60 percent of all NZ families
- Superannuation will be raised $52 per fortnight for a single person and $80 for a couple
- Benefits to increase up to a further $35 a week
- Winter Energy Payment will restart on May 1 providing $31.82 a week for couples and people with dependent children – a total of $700 over winter.
Minister of Finance Grant Robertson said the treasury and Ministry of Transport estimates that the three-month fuel tax reduction will cost $350 million, and the public transport subsidy between $25 and $40 million.
These costs would be paid for with savings and a re-prioritisation of funds from the Covid Response and Recovery Fund - in particular the reduction in costs related to MIQ.
Top Image: At the gas station stock photo (Source: iStock)