Northlanders forced to choose between fuel and food: Govt slashes fuel taxes

Liz Cassidy-Nelson, chief executive of 155 Community House that runs Open Arms, says 25c off a litre is nowhere near enough. Photo / Tania Whyte

Hard-up Northland families forced to choose between food and fuel are being given a reprieve at the pump as the Government slashes fuel excise duties.

Today the Government announced fuel excise duties and road user charges would be cut by 25c a litre each from midnight and would last for the next three months.

Prime Minister Jacinda Ardern described the current situation as a "global energy crisis" after Russia's invasion of Ukraine.

Liz Cassidy-Nelson, chief executive of 155 Community House that runs Open Arms, said the foodbank was experiencing the busiest ever service.

Cassidy-Nelson said huge deprivation was seen throughout the community and the reduction of 25c a litre was not enough.

"The welfare expert committee signalled way back the increase in the benefit rates, and unfortunately the state of affairs is that the price of everything has increased.

"Families have to choose between fuel and food. Fuel, food, rent, power, it is just a never-ending increase," she said.

"The decrease of 25 cents is nowhere near enough."

Government cuts fuel excise duties and road user charges by 25c a litre each from midnight on Monday. Photo / Michael Cunningham

Kaikohe mother of six Amber Woods is being forced to dip into her power budget as the $200 a week for food is grossly inadequate.

"Half the things are unavailable and the cheaper version brands are also not available. My youngest has down syndrome and is gluten-free, which is more expensive.

"Noodles are $7 a bag and meat is so expensive...$12 for 500 grams that won't even feed my kids, so I have to put veges in to try and stretch our meals. Whenever I go over my food budget, I take money from the power bill and then cover the shortfall the next week.

"I also do a lot of baking. Even people on good wages are struggling with the cost of living. I've always lived on a budget and that means dealing with things the best you can," she said.

A mother of one who moved from Waikato to Arapohue from Waikato three years ago cannot drive and is being forced to hitch a ride with a neighbour to buy groceries from Countdown in Dargaville.

That's because a lack of staff meant Countdown cannot do home deliveries. There's no Pak N' Save or New World in Dargaville.

"There's quite a few people in this area who don't drive and have to contact the supermarket to check for delivery slots which are run from Auckland. I can't even afford beef mince because the regular price is $19.50 a kilo which is more expensive than those sold at the butcher.

"I am left with a choice of processed crap due to a lack of competition. That's just one reason why the price of groceries are so high. There's no reason for supermarkets to be making the sort of profits they are making. We've been held to ransom," she said.

Marion Skill lives in Awanui and the 81-year-old said Kaitaia desperately needed competition as the town only has Pak N'Save.

She occasionally goes to New World in Kerikeri, which she reckons has a wider range of products than those found at Pak N' Save in Kaitaia.

"I was doing keto for a while but not any longer. Almond flour is another that's not available in Kaitaia. We desperately need competition because the only supermarket we have is very basic and we live in a low socio-economic area," Skill said.

Eric Rush, owner of New World in Regent, said his staff were caught unawares of the impending fuel price rise late Friday.

"We didn't expect the rush at all but we had more than enough fuel. There's a sudden rush then things fall back to normal the next day."

His supermarket is offering 6c off in fuel for shoppers.

Rush said the demand for fuel at his supermarket pumps on Friday evening was double the normal uptake.

The changes will reduce the cost of filling up a 40-litre tank of petrol by over $11 and for a 60-litre tank over $17, PM Ardern said.

Fuel excise duties and road user charges will be reduced by 25c each and the price of public transport will be halved as part of a package of measures to reduce transport cost pressures on middle- and low-income households.

The half-price public transport fares should come into effect on April 1.

Additionally, almost 60 per cent of families will get an increase to Working for Families of on average $20, Superannuation to increase $52 per fortnight for a single person and $80 for a couple, and benefits to increase up to a further $35 a week.

Winter Energy Payment will re-start on May 1, providing $31.82 a week for couples, and people with dependent children – a total of $700 over winter.

Finance Minister Grant Robertson said the estimated cost of this (fuel excise duties and road user charges) cut over a three-month period was about $350m for the fuel tax changes.

"This will mean reduced revenue for the National Land Transport Fund, which funds our investment in roads and other transport infrastructure."