Prime Minister Jacinda Ardern announced today the Government will deduct 25 cents per litre off fuel for three months as part of a cost of living package.
Fuel excise duties and road user charges 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.
Prime Minister Ardern says, “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.
“In addition on April 1 a suite of permanent increases to household incomes will see 60 percent of families earning more from Working for Families, as well as increases to superannuation and benefits. On May 1, one million New Zealanders will also start receiving the Winter Energy Payment which will provide $30 a week extra to many.
Finance Minister Grant Robertson said the fuel excise cut is the most efficient and direct way to help Kiwis now.
- Petrol excise duty and road user charges both cut by 25 cents a litre for three months
- Additional reporting to support expectation that the full amount of tax reduction will be passed on to consumers at the pump
- Public transport fares cut in half for three months to provide cheaper transport options
- Government to top up lost revenue to Land Transport Fund to ensure all currently funded transport projects will not be affected
- Temporary measures form part of a cost of living relief package that includes April 1 income increases for majority of New Zealand households
- Almost 60% of families to get an increase to Working for Families of on average $20, Superannuation to increase $52 per fortnight for a single person and $80 for a couple, and benefits to increase up to a further $35 a week
- Winter Energy Payment to re-start on May 1 providing $31.82 a week for couples, and people with dependent children – a total of $700 over winter
Act Party released a statement this afternoon congratulating the government on trimming the petrol prices by 25 cents. According to ACT leader David Seymour, petrol tax has increased by 41 cents under the Labour government .
“We congratulate Labour for finally listening after ACT first dubbed this a crisis three months ago. The dominos have fallen since then, with National, Carmel Sepuloni, and now Jacinda Ardern admitting there’s a crisis.”
Media outlets are reporting that petrol companies such as Mobil have reduced their prices immediately since today’s announcement.