With petrol prices gradually increasing over the last three months, Hospitality New Zealand has welcomed a government move to reduce excise duty on petrol, describing the move as “essential.”
HNZ CEO, Julie White said the “urgent relief” was welcomed by everyone at this time of cost-of-living crisis but more will likely be needed.
“The price of petrol affects the price of everything our businesses use, particularly food and beverage, and continuing hikes will only make a tough situation even tougher.
“Hospitality and accommodation businesses simply cannot absorb the additional costs caused by petrol price hikes on top of those food increases as they continue to struggle as a result of the COVID downturn.
“Unfortunately, they will still have to put prices up, and that will hurt consumers and keep more of them away. It’s a vicious cycle.
“Higher petrol prices also put a damper on people going out for a coffee or a meal or traveling domestically.
Ms White said it was a timely reminder to the government on how it collects taxes because fuel is an essential commodity whose price affects every part of the economy.
“But it’s not just petrol prices and it’s not just now,” she said.
“The Government needs to deliver a broader plan that tells us what they will do to help alleviate cost pressures further out than the three months this reduction covers, because it looks like this will get a lot worse before it gets any better.
“On behalf of hospitality staff who rely on public transport we welcome public transport fares being cut in half.”
According to GlobalPetrolPrices.com, gasoline prices per litre for octane-95 for the period January 17 to 07 March 2022 rose from NZD2.60 to NZD3.14.
Mike Parker-Brown is a UK-trained and qualified journalist and an award-winning travel communicator with more than 30 years experience.
Since 2002, Mike has worked as a freelance writer and PR consultant providing his services to major organisations in Australia and internationally in the tourism, aviation, hospitality, recruitment and export marketing sectors.