The Taxpayer’s Union has called the proposed hike in petrol tax in January cruel and said it should be postponed until at least the end of the cost of living crisis when inflation is back under 3 per cent.

The 25-cent fuel tax reduction was announced earlier this year following a Taxpayers’ Union campaign that highlighted the 52 per cent of the pump price that went to fund taxes and levies.

Taxpayer’s Union Campaign Manager, Callum Purves, said:

“With inflation above 7 per cent and interest rates still on the rise, the cost of living crisis is going to get worse before it gets better. Whacking up the fuel tax by 25-cents in January could not come at a worse time for New Zealanders.

“And that’s before we consider the effects of further sanctions on Russian oil and cartels in the Middle East cutting deals to reduce production. Petrol prices are not going to come down any time soon. It would be cruel for the Government to push them up even further.

“To their credit, the Government responded to the situation earlier this year. But things have got worse—not better. At the very least, Labour now needs to rule out hiking the fuel tax until the cost of living crisis is over and inflation is back under control.”