Fuel prices rising as Labour warns support ‘won’t touch the sides'

Fuel prices have surged in recent weeks, putting fresh pressure on households across New Zealand.

Concerns are also growing that many families will not get enough support to cope.

Labour MP Tangi Utikere says the government’s $50-a-week fuel support package will not go far enough especially for households, including Pacific families, already struggling with the rising cost of living.

Utikere said the increase to the in-work tax credit would miss many New Zealanders who need help the most.

“What we need to hear from the government is what they’re going to do for most New Zealanders who are really finding it tough right now,” he told Pacific Mornings.

He said retirees, students, and those without children would miss out, adding that while some families may benefit, the support would not “touch the sides for many Kiwis”.

Public transport is being raised as one option to help ease pressure from rising fuel costs. Photo/LTNZ

Utikere also said there were other ways the government could ease pressure, including support for working from home, clean-car subsidies, and public transport.

He criticised what he described as spending choices.

“There’d be more money in the kitty if the government didn’t give tax breaks to landlords and tobacco companies… this is about priorities,” he said.

The warning comes as fuel prices have risen sharply over the past 28 days, according to Gaspy. Data shows that, as of Wednesday afternoon, average prices were up about 42 per cent for Unleaded 91 and 95, 33 per cent for Unleaded 98, and 95 per cent for diesel.

Prime Minister Christopher Luxon defended the government’s approach, saying it was important to balance short-term help with longer-term financial stability.

He said global fuel disruptions linked to conflict in the Middle East were pushing prices higher, but New Zealand remained in a relatively strong position.

“The world is currently facing the greatest disruption to fuel supply in a generation. New Zealand is in a good position with healthy stocks of fuel in the country and more on the way,” the Prime Minister said.

Luxon said the $50 weekly payment for eligible families was designed to be “temporary, timely support that is targeted”.

“We won’t be able to alleviate the pressure of high fuel prices for everyone, but we can minimise the long-term impact by not adding to government debt,” he said.

Watch Tangi Utikere's full interview below.

The support will apply from April through to next year, or until fuel prices ease. Despite rising prices, officials say there is no immediate fuel shortage.

The Ministry of Business, Innovation and Employment (MBIE) says supply remains stable, with “healthy” stock levels in the country and on incoming shipments. This is equal to about 47 days of fuel cover as of mid-March.

Mark Stockdale, of Transporting New Zealand, said fears of shortages were overstated.

He said the shift to importing refined fuel had increased volumes “on the water”, helping support supply even as prices remain tied to global markets.

But with fuel costs continuing to climb and global tensions ongoing, pressure is expected to remain on households especially those already feeling the squeeze.