Prime Minister Chris Hipkins has confirmed that the fuel tax cut and public transport discount will be extended again, this time until June 30.
The cuts to the fuel excise duty (FED) and half-price public transport fares were first introduced in March 2022, with Jacinda Ardern describing the situation as a "global energy crisis" following Russia's invasion of Ukraine.
The package was initially scheduled to last just three months, but it has received several extensions.
The cost of living has continued to rise, and with the devastating floods that have hit the North Island, Hipkins says this will be the "first step" in a series of measures to help Kiwis who are facing ongoing challenges.
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Transport costs are the third biggest expense for families, following housing and food, says Hipkins.
The FED reduction will save about $11.50 from the cost of filling up a 40-litre tank of petrol, and for a 60-litre tank, it'll save around $17.25.
The half-price public transport fares save an average person who pays two $5 fares a day $25 a week. Community Service Card holders will have continued access to the half-price discount from July.
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The Road User Charge (RUC) discount, which ended on Tuesday night, will also be reintroduced eventually, and it'll also last until June 30. But to extend this, legislation is required.
"I've said bread and butter issues like the cost of living would be my top priority. This is our first step in dealing with some of the persistent cost pressures on businesses and families," says Hipkins.
"Reducing the cost of fuel excise and public transport is a good candidate for early action - it's a major cost for nearly everyone, we know how to do it, and can roll it out quickly."
Hipkins also acknowledged that the floods that have hit Northland and Auckland are adding extra stress and financial pressure to Kiwi families.
"Cutting fuel excise and keeping half-price public transport gives some extra relief as Auckland goes through a difficult period," Hipkins says.
“New Zealanders understand we’re facing international pressures that are driving up inflation and prices. This policy won’t solve the crisis, but it will make a difference. I know that every bit helps."