Jacinda Ardern hopeful fuel will cost less in NZ as crude oil prices plummet due to coronavirus

Jacinda Ardern says the government is trying to make the transition to a more environmentally friendly economy just and the rapidly increasing fuel prices have been too jarring.

The Prime Minister says she hopes fuel prices will fall in New Zealand, as oil prices plunge due to the reduction in travel caused by the Covid-19 coronavirus outbreak. 

Last month, the Government announced it would be  bringing in new rules to promote competition and transparency in the fuel industry with the aim that it would pull down prices after a report found Kiwis were paying too much at the pump. 

"My message would be they're always very quick to respond to an international crisis in order to put the price up - I'd hope they'd respond in the reverse and put the price down," Jacinda Ardern said today, when asked if prices should drop. 

"We haven't got enough transparency in the system...We're working on that through Parliament."

It comes as oil prices have plummeted as people reduce travel due to coronavirus. 

"I'd like those companies to remember those consumers they're meant to be serving as well," Ms Ardern said. 

Crude oil prices fell by 30 per cent, the biggest one-day drop in nearly 30 years.

On the impact of business, Ms Ardern said the country's response to health "will ultimately serve our economic recovery in the face of the global economic impact of the virus". 

Today, the Reserve Bank of New Zealand and New Zealand Bankers’ Association jointly said potential support for customers could include reducing or suspending principal payments on loans and temporarily moving to interest-only repayments, helping with restructuring business loans and providing access to short-term funding.

Reserve Bank Governor Adrian Orr said that "all businesses should be preparing for possible disruptions from Covid-19". 

Finance Minister Grant Robertson today outlined details of the business continuity plan, which is set to see more information released next week. 

It included "a targeted wage subsidy package for workers in the most adversely" impacted sectors.

There’s support available for those impacted as the virus spreads, the Prime Minister told Breakfast.

It also included training and redeployment options for employees and "working with banks on the potential for future working for capital support for companies that face temporary credit constraints".

Treasury and IRD are continuing to develop tax policy options "in line with the goal of reducing the impact for effected businesses, and for business to maintain operational continuity".

"The focus here is on more flexibility for targeted small businesses to meet their tax requirements, targeted relief to support affected businesses and maintain employment, and support for measure for business investment," Mr Robertson said. 

Treasury and Ministry of Social Development are looking at policies to support households. 

He said that would prioritise employer support with regional and national targeting options and income relief.

He made the appeal on Breakfast this morning.

This morning, Opposition Leader Simon Bridges said a wage support scheme is needed in the short term. 

He said in the medium- to long-term, tax relief is needed, as well as small business support, family packages and regulatory relief.

"Not in two or three years’ time but with some urgency."

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