Motorists may have a little more breathing room before fuel taxes and road user charges return to their normal levels.
Fuel excise taxes were cut by 25c a litre in March, initially for three months but the cut was then extended until January 31 next year.
Public transport fares were also cut in half for that period and road user charges reduced.
But Grant Robertson told Q&A on Sunday that Cabinet had not yet made a decision on whether to extend the discounts beyond January 31.
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The move was initially in response to a “global energy crisis” caused in part by disruptions due to the war in Ukraine.
In March, petrol prices were hitting $3 a litre. When the extension was announced in July, prices were still hovering around that level and the Government estimated that if it did not extend the cut, it would add an extra $11 to the cost of an average tank of petrol.
On Sunday, 91 in central Auckland was selling for $2.58 a litre.
But cost of living pressure remains, and the Reserve Bank warned that inflation was likely to remain higher for longer and require more stringent efforts to control it.
John Bisset/Stuff
Grant Robertson says fuel prices are a big part of inflation.
“We will look at economic conditions as they are and make any decision,” Robertson said.
“We haven’t finalised out position on that. We’re acutely aware of the fact that the fuel excise duty cut has contributed to lower inflation because fuel is such a big part of the CPI it’s kept inflation in check. Part of the reason the Reserve Bank is expecting CPI to hold up is that it expects the excise duty cut to end.”
But he said it was not a costless decision because the money that was not being gathered was needed to pay for roads and public transport.
“This can’t go on forever. We will make a judgement soon whether it can be extended. If it does, it won’t be for a long period of time because ultimately we need that money for the long-term for the things New Zealanders want and need.”
He said a decision would be made before Christmas.
