Petrol tax cuts to end in March

The government has announced a short extension to the cut in fuel excise tax but will phase the reduction out by the end of March 2023.

The measure to slash 25 cents a litre off fuel excise duties was first made in March this year in response to the global energy crisis and the rising cost of living.

It was originally put in place for three months but has been extended on a number of occasions and was due to expire in January.

Grant Robertson, Minister of Finance, says the petrol tax cut will now continue to February 28, after which it will drop to 12.5 cents a litre before being fully removed on March 31.

“The government has invested over $1 billion over the past year to reduce fuel prices. However, it is not sustainable to continue to subsidise the cost of petrol indefinitely for everyone,” he adds.

A similar discount for road user charges will end on January 31. Robertson notes it was not being extended to the end of March because it was pre-purchased and those purchasing in December and January would receive relief for months afterwards.

Half-price public transport, which was also part of the original package, will also continue until March 31 and will be made permanently half-price for people with a community services card.