NZ's Willis: We want to see fuel prices start coming down

New Zealand Finance Minister Nicola Willis has emphasized the government’s focus on stabilizing fuel prices and mitigating the impact of rising costs on households and businesses. Speaking in early April 2026, Willis noted that petrol prices had surged past NZD3 per litre, driven by global tensions in the Middle East and disruptions to oil supply chains. The government has responded with targeted support for low- and middle-income families, including a temporary NZD50-per-week increase to the in-work tax credit for approximately 143,000 working families with children.

Willis acknowledged the acute cost-of-living pressures facing many New Zealanders but ruled out broad-based fuel tax cuts, stating that such measures could encourage increased consumption and worsen inflationary pressures. Instead, the government is prioritizing temporary and targeted relief, with the in-work tax credit remaining in place until 31 March 2027 or until fuel prices fall below NZD3 per litre for four consecutive weeks.

Fuel prices have risen significantly since the start of the year, with regular petrol reaching over NZD3.40 per litre in early April 2026. The government is closely monitoring supply levels, with current reserves sufficient to meet demand for several weeks. However, the volatility in global oil markets has led to increased uncertainty, prompting the Ministry of Business, Innovation, and Employment (MBIE) to temporarily suspend importer cost estimates.

Willis also highlighted the importance of maintaining supply chain resilience and ensuring that critical sectors, such as aviation, remain unaffected. Air New Zealand continue operations without disruption, according to government officials. While New Zealand has not followed Australia’s approach of reducing fuel excise duties, the government remains open to “targeted, temporary, and timely” initiatives if conditions persist.

For businesses, existing tax incentives offer—such as fringe benefit tax exemptions for employer-funded public transport—a means to support employees without relying on broader fiscal interventions. As the government continues to assess the evolving situation, the focus remains on targeted relief and ensuring that fuel price pressures do not derail the broader economic recovery.