New Zealand Will Give Cash Payments To Low Income Families Amid Global Fuel Crisis
Nearly 150,000 low income families in New Zealand will be receiving a weekly cash payment to help them afford gas amid the global fuel crisis caused by the war in Iran. This is believed to be the first fuel relief package that directly pays citizens in the world since the start of the war, according to reports.
Prime minister Christopher Luxon and finance minister Nicola Willis announced this week that about 143,000 families with children will be getting an extra NZ$50 (US$29.20) a week through the in-work tax credit. This credit is, in general, a payment made for low-to-middle-income families with dependent children, and requires at least one parent in paid employment with neither parent receiving benefits.
An additional 14,000 families who have a “slightly” higher income will also be eligible for these payments, but will receive less money weekly.
The Guardian reports that this will be temporary, lasting for one year starting in April, or until the price of 91 octane gas drops below NZ$3 (US$1.75) a liter for four consecutive weeks.
Since the Middle East conflict began, gas prices have increased around 40 to 50 cents a liter. Some stations have even reported running out of gas due to the urgency of citizens trying to stock up.
As of Tuesday, it’s been reported that New Zealand had 46 days worth of combined gas, diesel, and jet fuel stocks.
Luxon stated that the priority was to make sure the country had a “sufficient fuel supply.” He made it clear that he was well aware of the impact these increased prices have on the average family and that it was “eating into household budgets.”
Willis said this new payment policy was directed to families “in the squeezed middle,” meaning parents who were working, not eligible for benefits, and had “modest” household incomes.
“We cannot control global oil markets or international conflicts, but we can soften the impact on working families who cannot easily avoid higher fuel costs by delivering support in a responsible and well-targeted way,” Willis said.
“But the relief package fails to help those hit hardest by the higher fuel costs,” said Green party co-leader Marama Davidson.
“This package does nothing for [people receiving benefits] and their children, retirees, or unpaid carers, who are all left out entirely. This is a crisis and the government’s response will do nothing for most New Zealanders,” Davidson said.
Other governments around the world are also taking their own measures to address the rapidly increasing fuel prices and shortages. The Philippines have cut down to a four-day work week, and Sri Lanka is rationing fuel.
Ireland’s government is working to sign off on cuts to excise duty on fuels to cushion the economic impact from the fuel crisis. Thailand and South Korea have both placed caps on domestic fuel prices, with South Korea also providing additional energy vouchers.
New Zealand is, so far, the first nation to offer direct cash payments as part of a government financial relief package.
Eric Mastrota is a Contributing Editor at The National Digest based in New York. A graduate of SUNY New Paltz, he reports on world news, culture, and lifestyle. You can reach him at eric.mastrota@thenationaldigest.com.
