Kate Hawkesby: Make no mistake, the Govt isn't 'slashing' fuel prices
Early Edition with Ryan Bridge · Newstalk ZB
March 14, 20223m 13s
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Show Notes
Less than a 24-hour timeframe is one of your quicker government flip flops - but nonetheless, that’s how long it took the PM to go from ‘no cost of living crisis’ to acknowledging a cost of living crisis. Although she did work hard to pin it on Russia.
Let's not forget petrol prices were rising before that.
But under pressure, and on the back of a bad poll, the Government's reacted - and filling your tank just got cheaper by either 11 or 17 dollars depending on the size of your tank.
It's a 25 cent a litre reduction in the excise tax - which usually comprises just over 70 cents of every litre, so they're still making 45 cents a litre there. And the obvious question is whether a saving of 11 bucks on filling the car will really make a difference to people right now?
Act calls it more of a trim than a cut - and it is a feel good factor - more token than of any real effect.
The newspaper headlines excitedly declaring yesterday the Government had 'slashed petrol prices' were being nothing more than enthusiastic cheerleaders for a government announcing nothing of the sort. It hasn't slashed them at all. It basically takes prices back to where they were about 3 weeks ago - which was still high.
They'll continue to go up and fluctuate, and that 25 cents a litre will barely be noticed.
In fact, I saw yesterday 98 was at $3.60 a litre - this'll take it back to $3.35 a litre - that's still way too expensive.
It may nudge 91 just below 3 dollars, but again that's still high.
Add to that increasing electricity prices again next month, plus inflation, which is the result of printing money - and the price of just about everything going up - and you've still got yourself a cost of living crisis - this doesn't fix it.
But hey, it's better than nothing.
I thought it was disingenuous though of the Government to take the liberty at yesterday's petrol price announcement of re-announcing the winter energy payments and the family tax credit increase coming up, as if that was a new solution to help the cost of living crisis.
That was all in fact, as we know, announced in August last year.
So, more relief for low-income earners coming will appease this Government that they're at least providing some respite at this time, but for road users, the 25 cent petrol relief is a temporary measure of 3 months.
How hard politically to dial back this back in 3 months time?
I think it’ll be tough, and that’s why the Government has it 'under review’.
Isn’t everything under review when a government’s tanking in the polls? And by the way, not that anyone has sympathy for Aucklanders, but thoughts and prayers this morning for supercity dwellers because they’ll still pay more for petrol than anyone else.
The Auckland regional fuel tax could’ve also been scrapped, but wasn't.
Let's not forget petrol prices were rising before that.
But under pressure, and on the back of a bad poll, the Government's reacted - and filling your tank just got cheaper by either 11 or 17 dollars depending on the size of your tank.
It's a 25 cent a litre reduction in the excise tax - which usually comprises just over 70 cents of every litre, so they're still making 45 cents a litre there. And the obvious question is whether a saving of 11 bucks on filling the car will really make a difference to people right now?
Act calls it more of a trim than a cut - and it is a feel good factor - more token than of any real effect.
The newspaper headlines excitedly declaring yesterday the Government had 'slashed petrol prices' were being nothing more than enthusiastic cheerleaders for a government announcing nothing of the sort. It hasn't slashed them at all. It basically takes prices back to where they were about 3 weeks ago - which was still high.
They'll continue to go up and fluctuate, and that 25 cents a litre will barely be noticed.
In fact, I saw yesterday 98 was at $3.60 a litre - this'll take it back to $3.35 a litre - that's still way too expensive.
It may nudge 91 just below 3 dollars, but again that's still high.
Add to that increasing electricity prices again next month, plus inflation, which is the result of printing money - and the price of just about everything going up - and you've still got yourself a cost of living crisis - this doesn't fix it.
But hey, it's better than nothing.
I thought it was disingenuous though of the Government to take the liberty at yesterday's petrol price announcement of re-announcing the winter energy payments and the family tax credit increase coming up, as if that was a new solution to help the cost of living crisis.
That was all in fact, as we know, announced in August last year.
So, more relief for low-income earners coming will appease this Government that they're at least providing some respite at this time, but for road users, the 25 cent petrol relief is a temporary measure of 3 months.
How hard politically to dial back this back in 3 months time?
I think it’ll be tough, and that’s why the Government has it 'under review’.
Isn’t everything under review when a government’s tanking in the polls? And by the way, not that anyone has sympathy for Aucklanders, but thoughts and prayers this morning for supercity dwellers because they’ll still pay more for petrol than anyone else.
The Auckland regional fuel tax could’ve also been scrapped, but wasn't.
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