Prime Minister Chris Hipkins has extended the Government’s fuel tax cuts and half-price public transport offerings in Auckland until June 30.

Hipkins is speaking after visiting the Moana Nui A Kiwa Hub with Finance Minister Grant Robertson in Māngere this morning to talk to people affected by the floods and help fill food boxes.

The announcement is:

• 25 cents per litre petrol excise duty cut extended to 30 June 2023 – reducing an average 60 litre tank of petrol by $17.25
• Road User Charge discount will be re-introduced and continue through until 30 June
• Half price public transport fares extended to the end of June 2023 saving an average person who pays two $5 fares a day $25 a week
• Half price public transport made permanent to around one million Community Service Card holders, including tertiary students, from 1 July 2023

Labour has already extended that three times since introducing it last March as temporary respite from soaring fuel prices and wider inflation.

It is Hipkins’ first policy-related announcement as Prime Minister – and his first attempt to show he is serious about making the cost of living the focus of his government, and cutting Labour’s programme elsewhere.

Hipkins said this was a start, a meaningful step to help with some of the significant costs for families and businesses.

He said the flooding in Auckland was putting extra stress on families.

Hipkins acknowledged food prices were a major challenge and said this will have an impact on those prices.

He said the cost of living would be at the centre of their budget process.

Hipkins said the increase in fuel costs were putting pressure on families who had no choice.

“This is something we can do quickly.”

For households on fixed incomes, he said they had no choice but to fill up their cars.

Finance Minister Grant Robertson said they knew because they already had this already running, that it was something they could do quickly.

Robertson said they found sufficient funding to fund the extension and said they had to strike a balance both fiscally and for struggling families.

He said the cost of food is one of the major issues facing New Zealand, “everyone can see it”.

If they want to make a quick difference, he said the best and the quickest thing they could do was extend the fuel tax cut.

He said things had changed since they planned to stop the subsidy a few weeks ago, and there was an issue “in the here and now”.

“We’ve taken another look, we have changed our decision,” Robertson said.

When it came to councils upping public transport fares, Transport Minister Michael Wood said they will be “very determined” that those using public transport will see the benefit.

Wood said the step they were taking would halve the cost, whatever the baseline is.

Hipkins said their work on climate change continues and the subsidy wouldn’t increase the fuel used by families.

Hipkins said in the long term they want to reduce reliance on fossil fuels but this is a “here and now” thing for Kiwi families. He said they canvassed a range of options when it came to the reductions but said most households have a dependence on fuel.

Robertson said insurance companies are signalling the Auckland floods will be the biggest non-earthquake event the country has seen.

Robertson said, as they always do, if there is a need to top up the EQC fund, that is what Governments do.

Act leader David Seymour has already criticised the expected announcement as “dumb, election year populism.” Seymour said oil prices were now back down and it was “time to rip the band-aid off.

“Last year, ACT told the Government that ‘there’s nothing more permanent than a temporary Government programme,’ and Chris Hipkins has proved us right by kicking the petrol tax cut down the road yet again.”

The measures were due to start winding down from the end of February when the fuel cuts were set to halve before ending completely at the end of March.

Announcing that in December, Finance Minister Grant Robertson said it would be the last extension for the costly measure, which has so far cost about $1.4 billion, most in the fuel tax cuts. The public transport element has cost $100m to $160m.

Late last year, a Taxpayers’ Union-Curia Poll found 71 per cent of respondents wanted the cut extended until inflation was under 3 per cent. Just 15 per cent of people said they did not want the cut extended after its scheduled January expiry date. Fourteen per cent of respondents were unsure.

Hipkins’ visit to Auckland coincides with another morning of major flooding.

He will also meet with the emergency operations staff and visit the North Shore, before spending more time in the city tomorrow ahead of Waitangi Day.

Yesterday Hipkins announced his reshuffle, including appointing Michael Wood as Minister for Auckland – a new portfolio in this government.