Fuel Taxes and Full-Price Public Transport Returning
December 14, 2022
The Government’s 25 cent cut to fuel excise duty (FED) has been extended and will now be phased out from February 28, with the Government’s entire package of transport subsidies to end by March 31.
The cut to FED was scheduled to end on January 31, but the full reduction has now been extended a month.
On February 28, the FED will increase 12.5 cents per litre and then rise another 12.5 cents at the end of March. That means Kiwis will be paying at least 25 cents more per litre of petrol by the end of March than they are currently.
There’s no extension to the cut in road user charges (RUC), which will still come to an end on January 31, while half-price public transport fares have been extended to the end of March.
The extension to the FED cut and half-price public transport is being labelled “cost of living support” by the Government. Inflation is expected to climb again in coming months and peak at 7.5 percent, according to the Reserve Bank.