New Zealand Mulls Fuel Tax Cuts As Prices Soar

New Zealand on Monday may announce temporary cuts on fuel taxes to reduce gasoline prices, Prime Minister Jacinda Ardern said.

Ardern for the first time acknowledged that soaring inflation is causing a cost of living crisis, and said that the government will consider ways to reduce fuel prices at the pump.

“You can call it a crisis, an emergency, a shock, the point is we need to do something about it,” Ardern told Newshub

“We’re looking at options to try and ease the particular impact of the energy crisis right now that we’re seeing as a result of the war in Ukraine. We, as a Cabinet, need to discuss what the best mechanisms are.”

In another interview, Ardern told Radio New Zealand that a temporary cut in gasoline excise taxes was one of the measures being considered. “We are looking at additional things we can do to ease the pressure on families,” the prime minister said.

Gasoline prices in New Zealand was above NZ$3 a liter ($2.04) last week, driven by surges in oil prices on top of supply concerns due to the war in Ukraine.

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