New Zealand cuts fuel tax after war in Ukraine | economy

New Zealand’s government on Monday cut fuel taxes and public transport fares in response to rising costs of living in the maritime nation, which has been fueled by an energy crisis caused by Russia’s invasion of Ukraine.

Prime Minister Jacinda Ardern said in a statement: “The global energy crisis is escalating rapidly, which is why the government has come forward to reduce fuel duty.”

Fuel tax and tolls will be cut by NZ$0.25 ($0.17 or €0.15) per liter over the next three months, saving about NZ$11 ($7.46) or €6.84 to fill a 40-litre tank, the executive said.

Likewise, the government will halve public transport fares over the same period as part of a relief package in response to rising cost of living, including increases in family allowances and contributions to pension funds.

“We can’t control the war in Ukraine or the continued volatility in fuel prices, but we can reduce the impact on New Zealand families,” Ardern insisted.

According to New Zealand Finance Minister Grant Roberson, the price of 91-grade gasoline, widely used by his compatriots, has increased by 15 percent since the start of the year to last week, largely due to the conflict in Ukraine.

Petrol and diesel have soared past their record highs for several weeks amid an energy crisis sparked by Russia’s invasion of Ukraine, with no end in sight after the US and UK embargo on Russian crude.