The government has announced that the fuel tax cut will be extended until January 2023.
Treasury Secretary Grant Robertson said the half price of public transport and the extension of road user rights cuts would also continue until January 31, 2023.
The first cut was implemented in March to ease the burden of livelihood on households.
The government has put together a treasury model to suggest it will cut inflation by 0.5% in the June 2022 quarter.
The extension, widely expected given high oil prices worldwide, will mean that while gasoline prices will remain largely in the $3 to $3.50 a liter range, they will not rise another 25 cents.
ROBERT KITCHEN/Things
Treasury Secretary Grant Robertson will hold a press conference on Sunday afternoon (file photo).
Without the extension, the government estimated that a 40-gallon tank of gasoline would cost an additional $11.
“We know inflation is rising around the world, and cost of living pressures are making life difficult for New Zealand at the moment. High fuel prices, mainly caused by the impact of the Russian invasion of Ukraine, are a global problem affecting New Zealand households and businesses,” said Treasury Secretary Grant Robertson.
“The Treasury estimates that the combined effects of these policies will reduce headline inflation by 0.5 percentage point in the June 2022 quarter. While many commentators predict inflation will peak in the June quarter, it is likely to remain at higher levels than we have seen in recent years for some time to come,” he said.
“Expanding fuel tax cuts and road user charges will also help reduce fuel pressure on the road transport sector, helping to lower the cost of food and essential goods,” said Transport Minister Michael Wood.