New Zealand cuts fuel tax amid spiking costs due to Ukraine war

Sydney, Australia, Mar 14 (EFE).- The New Zealand government on Monday cut fuel tax, road user charges and public transport fares in response to the increase in the cost of living as a result of the energy crisis caused by Russia’s invasion of Ukraine.

“The global energy crisis has quickly become acute, which is why the government has stepped in to cut fuel duty,” Prime Minister Jacinda Ardern said in a statement.

Fuel tax and road user charges will be lowered by NZ$0.25 ($0.17) per liter over the next three months, saving more than NZ$11 in filling a 40-liter tank, according to the government.

Public transport fares will be cut in half for the same period as part of a relief package to respond to the increase in the cost of living, which also includes increases in family subsidies and contributions to pension funds, among other things.

“We cannot control the war in Ukraine nor the continued volatility of fuel prices but we can take steps to reduce the impact on New Zealand families,” Ardern said.

Finance Minister Grant Roberson said the price of widely used 91 petrol has increased, largely due to the conflict in Ukraine, by 15 percent from the beginning of the year to last week.

Petrol and diesel have reached record highs for several weeks in the midst of the energy crisis caused by the Russian invasion of Ukraine. EFE

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