Fuel prices: Government transport subsidies to end, commuters brace for a hit to the pocket

Krystal Gibbens, Reporter

krystal.gibbens@rnz.co.nz

Commuters are bracing for a hit to the pocket, with fuel tax and full-priced public transport fares set to be reinstated from 1 July.

Fuel is expected to go up 29 cents per litre, and a temporary reduction on road user charges (RUC) will also cease.

In Porirua, several savvy consumers had beaten the queues and already filled up their cars. But with the tax expected to hike the price of petrol by around 30 cents a litre, many were already anticipating the pinch.

"I'll probably be a bit more careful about the number of trips I do, or the reason for them, and trying to combine things a bit," Theresa told RNZ, while filling up her car on Wednesday.

"I'll definitely be doing more walking, et cetera, and stuff now rather than using my car," said fellow driver Kristy.

Others, like Allison, have already started cutting back.

"We've definitely cut down on our groceries," she said. "[We're] trying to grow more food at home, but you know, that's a lot weather-dependant."

Waitomo Group owner Jimmy Ormsby told RNZ because it was a tax, it was a cost that would be completely passed back to consumers.

"Let's be clear that the government took the tax off that product and they're reinstating it," he said.

But Ormsby said there was still a variance in the price different retailers offered fuel at, and recommended consumers shopped around to make sure they were getting the best price.

Douglas also had some tips on how to get more out of the tank.

"You use a remarkable amount of fuel accelerating and braking," he said.

He also recommended checking the tire pressure and taking off unused roof racks to maximise efficiency.

At the same time as petrol goes up, train and bus tickets will also double for adult users.

Free public transport for under-13s and half price for those under 25 will remain, as was announced in the 2023 Budget.