Petrol stations slammed as Govt fuel subsidy comes to an end

June 30, 2023

The price in fuel is expected to climb around 29 cents per litre from tomorrow. (Source: 1News)

Massive lines of vehicles crammed into petrol stations today as the Government wraps up its fuel tax subsidy.

A mandated discount of 25 cents per litre is set to end after being introduced in March of last year during soaring prices.

People lined up to fill their cars, some bringing gas canisters and a number of people telling 1News they would be making multiple trips.

"Everything is going up. We've got family, we've got kids, so we might as well be able to fill up now," one person said.

Another driver pulling into West Auckland's Costco said he'd be back tomorrow, making sure he could get his last litres of discounted petrol before the subsidy ends.

People lined up to fill their cars, some bringing gas canisters and a number of people telling 1News they would be making multiple trips. (Source: 1News)

"If it's cheaper, get it now," he told 1News.

The diesel road user charge discount of 36% will also be finishing from tomorrow.

Other schemes on their final day include half-price public transport, which will once again be full-price for those aged 25 and up, and free for kids under 13.

Speaking to Breakfast this morning, Gull New Zealand's Dave Bodger said that while he can't announce how much fuel will cost at his stations, it won't be super high.

Gull New Zealand's Dave Bodger had an important message for drivers. (Source: Breakfast)

"Everybody's asking me that, I can say that our prices [the company's costs] are put up by the Government at midnight tonight," he said.

"When the excise dropped, we dropped all of our controlled service stations between midnight and half-past midnight.

"Petrol's not gonna go over $3 a litre," he said. "Not for our sites."

He said prices won't be at the level they were last March, "when Mr Putin put himself in to bat".

At a media standup in China, Prime Minister Chris Hipkins acknowledged that "no increase in costs for anything is welcome".

Chris Hipkins speaks to media in China.

He said that petrol prices are now lower than they were when the Government introduced the subsidy, which is why the policy is ending.

"It is money that we need in order to maintain the roads, build the roads.

"We've continued it for as long as we can financially," he said.

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