Summarised by Centrist
The government has decided to retain its $50-a-week fuel payment for working families, despite petrol prices meeting the threshold previously set for ending the support.
The payment and increased mileage rates for home and community support workers were introduced in March and April as “timely, temporary, targeted” measures during the global fuel crisis.
The government said the assistance would remain for either 12 months or until the average price of 91 petrol stayed below $3 a litre for four consecutive weeks.
MBIE figures show that condition has now been met. However, Finance Minister Nicola Willis said prices climbed back above $3 last week, prompting Cabinet to keep the support in place.
“Given increases in the international oil price, prices could remain above $3 into the coming weeks,” Willis said.
Treasury forecasters expect petrol prices to remain above $3 throughout August and September before declining again.
Willis said it was therefore “too soon to declare a sustained stabilisation in the fuel price”.
She will report back to Cabinet if the price falls below $3 again, meaning the payment could still be withdrawn before the original 12-month period expires.
The decision effectively makes the previously announced four-week cut-off discretionary, with Cabinet looking beyond the formal trigger to expected future petrol prices.
