Jacinda Ardern won't say whether the tax cut will continue beyond August
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Petrol prices are as high if not higher than when the Government slashed fuel excise duties by 25c a litre in March, and now diesel is more than $3 a litre in some places.
Despite this, Prime Minister Jacinda Ardern says New Zealand is ready to weather the current economic "storm".
With inflation spiralling out of control, and world interest rates continuing to hike, Ardern says that Aotearoa remains in a good position.
It comes after Statistics NZ revealed last week the country's Gross Domestic Product (GDP) fell 0.2 percent over the March quarter.
"There doesn't seem to be that acknowledgement that, in the next quarter, we'll see results as we've seen in this quarter," Ardern said of the latest GDP data. She then noted that the "tough international environment" is responsible for the current economic situation.
"What I'm acknowledging, generally, is that it is a tough international environment right now but the underlying fundamentals for New Zealand are strong," she said. "Our economy has still grown and seen more activity post-COVID than we did pre.
"We know that, actually, there is underlying strength in our economy; we've got low unemployment, we've got low debt - we're well-positioned to navigate what is a very stormy, turbulent time internationally."
Ardern also mentioned that the Russia-Ukraine war is still creating "a number of really difficult" economic factors, including impacting the skyrocketing fuel prices, which have climbed back up to and above $3 per litre across the country.
In March, the average fuel price per litre for 91 octane was $2.98 at New Zealand stations, and that's with the Government's petrol excise tax cut of 25c per litre that was extended to August.
Despite fuel prices continuing to rise, Ardern wouldn't say whether the tax cut would continue beyond August.
"I don't want to give a prescriptive, 'If X happens, if Y happens," she said.
"[There's] a lot of volatility, a lot of movement that's why, yes, we've done the 25c [petrol excise tax cut] but we've also done other things."