An economist says an extension of the fuel tax discount is dumb policy.

It will be extended until the end of June alongside discounted road user charges and half price public transport fares.

Infometrics Principal Economist Brad Olsen says the Government has done a complete turn around on this.

He says it's not directly targeting those worse off and it will benefit the rich more than the poor by about three times as much.

LISTEN ABOVE

• Barry Soper: Extension of the fuel tax cut won't be good for inflation
• PM extends fuel tax cuts, half-price public transport until June 30