Yesterday, however, the Prime Minister announced that we have a global energy crisis, after Russia's invasion of Ukraine. Well aware that she was looking out of touch and obdurate, the Prime Minister decided over the weekend she had to respond to calls to help New Zealanders who are struggling to pay the rent, fill the car and put food on the table. And so, yesterday Cabinet decided that they would offer some relief.
Reducing fuel, excise duties and road user charges by $0.25 a litre each for the next three months is easy and thus with a stroke of a pen it was done. The petrol tax tweaks will provide some relief, but don't address the wider cost of living crisis.
We all know it's way more expensive right now to do anything than it was six months ago. So whether reducing the fuel excise tax is going to help you materially or not what's important in terms of the Government optics is that they have been seen to respond, finally.
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