Fuel tax cut to ease pressure on Kiwi families

With the Ukraine invasion causing global petrol prices to spike, we’re taking immediate action to ease the pressure on Kiwi families. We’re reducing fuel tax by 25 cents a litre and cutting public transport fares in half, as part of a wider cost of living relief package.

The war in Ukraine has caused a global energy crisis, and this has had a significant impact on petrol and diesel prices here in New Zealand. Last week, prices at the pump increased by the highest amount on record, and we’re expecting to see continued volatility. This is on top of the pain already caused by the pandemic, with COVID causing high levels of inflation right around the world.

We know that together, these pressures are making it tough for Kiwi families. That’s why we’re taking action to provide immediate relief.

25¢/L cut to fuel tax

We’ve cut petrol excise duty by 25 cents a litre for three months, to support Kiwis through the current crisis. This will reduce the cost of filling up a 40 litre tank of petrol by more than $11, and for a 60 litre tank, by more than $17.

36% cut to road user charges

More support is coming on 21 April, when road user charges will be cut by 36%. This reduced rate will stay in place for the next three months, making it cheaper to transport goods and services – and for families to get where they need to go.

Reduced public transport fares

We’re also making it cheaper for people who catch a bus or a train, cutting public transport fares in half for the next three months. This will make getting to and from work cheaper for many Kiwis, and provide some families with an alternative to filling up the tank.

Further support kicks in 1 April

Together, these measures will help to ease the immediate pressure for Kiwis, as we continue to target longer term measures to the people who need them most, through a wider package of support.

This includes a suite of changes that came into force on 1 April, giving the majority of Kiwi families, along with pensioners and students, a significant income boost. Our improvements to Working for Families alone will see around 60% of all families – more than 300,000 households – better off by an average of $20 per week. The Winter Energy Payment, which helps more than a million people with heating bills through the colder months, will also provide extra support from May.

See more on our 1 April changes here

This is all part of our broader programme of work to reduce cost pressures on New Zealanders. Since we came into Government in 2017, we’ve introduced the family tax credit, free school lunches, cheaper doctors’ visits for almost 600,000 people, Superannuation boosts, and historic increases to main benefits, among many other initiatives.

There’s no silver bullet for the current cost-of-living pressures – but we’re taking a range of actions that, together, will make things easier. Our initiatives are already making a real difference for families across New Zealand, and reducing fuel tax will provide further support.

Labour has a long history of looking out for all New Zealanders, and we’re proud to continue that legacy with policies, like our changes to fuel tax, that ensure low and middle income Kiwis aren’t left behind.

Stay in the loop with the latest announcements by signing up to our mailing list and following us on Facebook, Instagram, and Twitter.