Prime Minister Chris Hipkins has extended fuel tax cuts and half-priced public transport until June 30th.

This is a reversal of an earlier Government decision to scrap these offerings by the end of March.

ZB's senior political correspondent Barry Soper says this will likely add to inflation, as the extra money saved will be sucked into the economy and drive up prices.

LISTEN ABOVE

• Mike's Minute: Petrol tax cut exposes Government's economic weakness
• 'Unavoidable rush' at pumps when petrol tax cut ends
• Petrol tax cut, discounted public transport extended briefly
• Petrol subsidy and half-price public transport to continue