The Government has confirmed that road user charges (RUCs) will be cut by 36% across all legislated rates for three months from late April.
This follows the 25 cent a litre cut to fuel excise duty (FED) to relieve pressure from rising fuel costs.
The RUC discount is expected to offer a similar savings for those driving diesel vehicles and is estimated to cost around $170 million across three months, depending on the uptake.
Transport minister Michael Wood says the steps ensure those paying road user charges will get three months of reduced rates even with the later start date.
“The complexity of road user charges means that a few more weeks are required to put the reduced rates in place.
“The confirmation of the road user charges discount and full scope of the public transport fare reduction will support New Zealanders through the global energy crisis caused by the war in Ukraine.
“The road transport industry plays a vital role in the supply of food and other essential goods across the country. It was important to the Government that we backed the industry through these challenging times,” Wood says.
Meanwhile, funding for local government has also been confirmed to implement half price public transport fares covering core public transport services from April 1 to June 30.
This is expected to cost $36.5m across three months and includes Te Huia and Capital Connection train services, and Total Mobility services for those with long-term impairments who are unable to use public transport.
Halving fares for public transport will help households and encourage people to substitute cars for buses and trains, Wood says.
“Reducing public transport fares also provides households with more money to manage rising living costs, which will be impacted by fuel prices,” he says.
“The cut in the fuel excise duty which came into effect last week has had an immediate impact at the pumps.
“I know that once the other parts of the package are in place in April, some of the pressures that many New Zealanders are facing will be reduced.
“The Russian invasion of Ukraine will continue to impact global energy markets and supply chains. We will be actively monitoring the situations over the coming months and working with our partners to make sure we have the overall package right.
“This support package will make a real difference to hard working families currently struggling with rising costs in these uncertain times,” Wood says.
