The Government is calling on petrol companies to ensure the temporary tax reduction at the pump will be passed on to consumers amid a growing global energy crisis.
Prime Minister Jacinda Ardern and Finance Minister Grant Robertson on Monday announced a raft of measures to offset the “wicked, perfect storm” of the energy crisis fuelled by the Russian invasion of Ukraine.
The cost of 91 petrol rose by more than 15 per cent from January to March this year. Meanwhile, the Waitomo Group warned customers on Friday to stock up ahead of a price hike which saw the price of diesel jump by 30 cents and petrol by 20 cents.
Read more: Rush to the pumps as petrol group announces 'biggest single price increase'
The temporary measures include cutting the petrol excise duty and road user charges by 25 centres a litre and the halving of public transport fares for three months.
The reduced fuel excise will come into effect from 11.59pm on Monday, before winding down in line with the stabilisation of global oil prices, Robertson said. The halved public transport fares will likely come into force from April 1.
Energy Minister Megan Woods said: "Most fuel companies are indicating that they're ready to reduce the price of petrol from midnight tonight".
"Of course, the Government wants clear evidence that the 25 cent a litre reduction in fuel excise duty is passed on to consumers and not absorbed into fuel companies' pockets."
Woods said she is writing to all of the country's fuel companies on Monday afternoon, "outlining our expectation that the full amount of the excise duty relief is passed on to consumers at the pump".
Read more: Govt slashes fuel tax, halves public transport cost for 3 months
She said daily information will also be sought from fuel companies over their rolling seven-day average fuel margins to monitor the industry's profits.
Ardern said while we "cannot control the war in Ukraine nor the continued volatility of fuel prices, we can take steps to reduce the impact on New Zealand families".
“Just as it was our job to get New Zealand through the Covid-19 health crisis it’s also our job to put in place a plan to get us through the global energy crisis too," she said.
"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."
The changes will see the cost of filling up a 40-litre tank of petrol by over $11, and over $17 for a 60-litre tank.
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