The Budget supports the Government’s prudent response to the global fuel crisis, with temporary targeted support and provision for further action if needed.
Nicola Willis said that since the outset of the conflict, the approach has been to stay ahead of risks to New Zealand’s fuel supply, keep the economy moving, and support those most affected by higher fuel prices with temporary, targeted and timely measures.
The Budget provides:
- Additional funding for Fire and Emergency, Corrections, Police, Customs and Education to maintain frontline operational activities in the face of sustained fuel price increases
- The NZD 50 a week increase to the In-Work Tax Credit for up to a year to help working families with increased fuel costs
- Funding of NZD 50 million for additional strategic fuel reserves to firm up New Zealand’s fuel resilience
- The temporary increase in mileage rates for support workers and people travelling for specialist treatment
- Support for public transport authorities to help manage fuel cost pressures and maintain services; and
- A NZD 450 million reserve for additional temporary targeted support if conditions worsen.
Willis added that, as the situation in the Middle East remains uncertain, it is prudent to be ready should fuel prices rise further, adding more pressure on households and businesses.
“The Middle East conflict underscores the need for fiscal discipline. Our ability to withstand global shocks depends on the strength of our financial buffers," said Williss.
"Budget 2026 provides sensible support to those most affected by rising fuel prices in a way that is affordable for the country, so we can continue rebuilding our buffers and restoring New Zealand’s financial security."
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