Policy begins on 1 April and is aimed to ease financial pressure as the price of fuel surges due to conflict in the Middle East
Nearly 150,000 New Zealand families will soon receive a weekly cash payment to help them afford petrol, the government has announced, in what is believed to be the world’s first fuel relief package that directly pays citizens since the Iran war began.
On Tuesday, prime minister Christopher Luxon and finance minister Nicola Willis announced roughly 143,000 families with children will get an extra NZ$50 ($29.20; £21.80) a week through a boost to the in-work tax credit – a payment to families with dependent children where at least one parent is in paid employment and neither parent receives benefits. Another 14,000 families on slightly higher incomes will also be eligible for payments, but will receive less than $50 per week.
The increase will be temporary, lasting for one year from 1 April, or until the price of 91 octane petrol drops below $3 ($1.75; £1.30) a litre for four consecutive weeks.
Petrol prices have increased roughly 40-50 cents a litre, pushing the average price of unleaded fuel to more than $3 per litre in New Zealand since the Middle East conflict began. Meanwhile, some petrol stations have reported running out of petrol, as people rush to stock up. As of Tuesday, the country had 46 days’ worth of combined petrol, diesel and jet fuel stocks.
