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We entered this challenging time in a stronger position than we would have been if this had happened two years ago, but the impacts are still tough for people.Many New Zealanders are understandably concerned about rising petrol prices and the pressure that puts on their household budget.Due to ongoing global supply-chain disruptions, fuel and other prices are likely to remain higher, and will possibly keep increasing, for a longer period.
This government is very conscious that getting economic management wrong during this crisis will have long-lasting consequences that are difficult to unwind.
We saw this in the aftermath of Covid where short-term decisions led to debt reaching $120b and inflation hitting a 32 year high which saw mortgage rates and other prices skyrocket. Kiwis are still grappling with the effects of that today.
National wants to ensure those mistakes are avoided.
Responsible economic management matters most when the world is volatile and unpredictable. By fixing the basics in the economy, we have been repairing the post-covid damage done by Labour.
One of the ways we have done that is by reining in wasteful spending saving taxpayers $43 billion to date in unnecessary expenses.
This has lowered interest rates, meaning Kiwis’ average mortgage repayments are down by as much as $10,000 per year.
We’ve lowered taxes, and our economy has been growing again, which means exporters and businesses doing well and more job opportunities for people. The latest data shows 1.1% growth over the last 6 months of 2025, and growth is still expected to continue, even with the conflict.
Sticking to National’s careful economic plan is how we can best insulate New Zealand and New Zealanders against this global shock and protect New Zealand’s future.
Sharp price increases at the pump are putting pressure on many Kiwis.
Even though there is sufficient fuel in the country right now, these sharp increases are happening because fuel companies are setting prices based on what it costs them to replenish their fuel stocks. The war is pushing those costs up. The Commerce Commission is watching fuel companies closely to ensure they are not using this situation to overcharge.
We believe the situation is serious enough that Government support for Kiwis is necessary. However, support will be disciplined and targeted to people in the most need.
here is no “magic money tree”. Every decision we make now carries longer-term consequences. Every dollar we spend must be paid back over time. Getting that spending wrong now would lock in more cost pressure for years to come. Ultimately, the people paying are Kiwis who have already been through enough.
So in providing relief, we will not be repeating the same cycle of higher debt and higher inflation that resulted from large-scale government spending during Covid.
We are now working quickly but carefully to provide timely, targeted and temporary relief to Kiwis who need it most. We will have more to say about relief soon.
What we can say today though is that relief is unlikely to include a reduction in fuel excise tax. That’s because cutting fuel excise tax would apply to everyone who fills up at the pump, regardless of whether they are the most in need of help.
New Zealand has enough fuel for at least the next seven weeks. The Government is maintaining a close eye on the situation.
We are actively working with the fuel industry to plan for inevitable future fuel supply disruptions.
We are also working closely with the fuel industry and preparing for potential supply disruptions. As part of that, we’re broadening our supply options – including temporarily aligning fuel standards with Australia so more shipments can come into New Zealand. -Hon. Christopher Luxon, Prime Minister of New Zealand