Wellington, March 31, 2026
New Zealand Prime Minister Christopher Luxon has defended his Government’s targeted cost‑of‑living support amid soaring fuel prices, saying that while New Zealand cannot control global energy markets, it must help those most affected.
In a post on X, Luxon said the conflict in the Middle East is directly leading to higher prices at the pump in New Zealand, putting pressure on households and businesses across the country. “That’s affecting households and businesses across the country, but the Government can’t afford to ease the pressure for everyone,” he wrote, adding that the Government must avoid repeating the “mistakes of Covid where excessive spending led to higher inflation and more debt.”
Luxon stressed the need for “timely, temporary, and targeted support to those who need it most,” emphasising that blanket measures would risk fuelling inflation further.
In response, his Government has announced a temporary boost to the in‑work tax credit, giving about 143,000 low‑ and middle‑income working families an extra $50 a week to help with rising fuel costs from early April. This support will last for one year or until petrol prices ease, whichever comes first, and expands eligibility to around 14,000 additional families at a reduced rate. The in‑work tax credit increase aims to cushion the blow of higher costs without adding to inflation or debt, officials said.
Under the wider package, more than a million New Zealanders will see increases to existing government support payments. Nearly 1 million superannuitants will receive boosted NZ Superannuation, with a married couple’s fortnightly payment rising by more than $50.
Around 280,000 families will benefit from higher Family Tax Credits—up to $1,050 extra a year—while students and beneficiaries will receive around $20 more a fortnight. The Government has also adjusted Working for Families to extend support to around 140,000 additional households, and is boosting KiwiSaver to help people save faster for a first home or retirement.
Luxon concluded his post by reaffirming the Government’s approach: “We can’t control global fuel prices, but we are focused on helping Kiwis with targeted support that New Zealand can afford.”(Agency)
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