Hipkins announces fuel tax cut extension

New Zealand prime minister Chris Hipkins has announced today that the Government will extend the fuel tax cut until June 30, 2023.

Half price public transport fares and discounted road user charge fares for diesel vehicles will also be extended until the end of June this year.

Hipkins said the fuel tax cut will reduce the average 60 litre tank of 91 octane petrol by $17.25 while half price public transport fares will save the average person who pays two $5 fares a day, $25 a week.

“These discounts were due to be phased out in the coming months. But with global inflation pressure forecast to keep our [New Zealand’s] rate around the 7 per cent mark for longer, it’s important we keep providing support to families and businesses who need it,” said Hipkins to the media.

He went on to say that the extension is important for those experiencing the recent flooding in Auckland which has put stress and financial pressure on families.

The discounts were originally introduced in March 2022 to help alleviate the cost of living crisis many Kiwis are currently facing.

Originally, it was understood that the Government would reintroduce the full fuel excise duty at the end of January but was pushed forward to February.

New Zealanders can now continue to expect to pay less at the pump, equivalent cuts for road user charges, and less for public transport with the discounts now extended until halfway through 2023.