Calls for free public transport as petrol prices rise, reduced fares near their end

Since the introduction of half-price public transport fares on April 1, public transport use has increased in the three largest centres.
Since the introduction of half-price public transport fares on April 1, public transport use has increased in the three largest centres. Photo credit: Getty Images

Despite fuel prices continuing to soar, the fuel tax reduction and half-price public transport fares could be nearing the end of the road.

In March, the Government reduced the fuel tax by 25 cents per litre and halved public transport costs to help struggling families with soaring petrol costs, which are largely due to the war in Ukraine.

The move to help ease the financial pressure from transport was extended for a further two months and is due to end on August 31.

But while the cost of living pressures has not eased, the Government has been tight-lipped on whether the reductions will stay.

Global Petrol Prices, which uses data from official government sources, regulatory agencies, petroleum companies and major media sources, has found New Zealand's octane-95 prices per litre have been steadily rising over the past few months.

It found the average price between April 4 and July 11, after the tax reduction was put in place, was a whopping $3.10.

Octane-95 gasoline prices per litre.
Octane-95 gasoline prices per litre. Photo credit: Global Petrol Prices

With prices of fuel becoming unobtainable for many Kiwis already struggling with the effects of the cost of living crisis, there are calls for the Government to introduce fare-free public transport to help ease financial pressures on the country's most vulnerable.

While community service card holders can receive half-price public transport fares, one organisation wants to go further and make it free.

Free Fares NZ has been campaigning to make public transport free for Community Service Card holders, tertiary students and under-25s.

"Public transport discounts enable us to access work, community, and education, and do so in a way which doesn't harm the planet. We need this now more than ever in the midst of the cost-of-living crisis and climate crisis," Free Fares NZ organiser/spokesperson from the Victoria University of Wellington Students' Association Hana Pilkinton-Ching said.

Pilkinton-Ching said extending the reduced fares is a policy "that just makes sense".

She said the reasons the Government introduce half-price fares, such as the cost of living crisis, still exist.

Pilkinton-Ching said there are lots of students who are struggling with transport costs, with some unable to travel to university.

"It's a disadvantage to people's education, but I would say importantly it's a disadvantage to people's connection with the student community," she said.

"To make connections and friends, and have access to places where they can do that is really important for both their education and well-being in the longer term." 

But they are not the only ones backing the move. Last month, the First Union and the Public Service Association released a report looking at the feasibility of free public transport in Auckland. 

"With the cost-of-living crisis and rising petrol prices hammering working people, half-price fares resulted in an immediate boost in public transport ridership," Assistant general secretary of FIRST Union Louisa Jones said. 

"Fare-free public transport is a key part of how we alleviate pressure on working-class families and kickstart Tāmaki Makaurau's recovery from the pandemic."

The half-price fares have been successful, with more people choosing to hop on board public transport.

A Waka Kotahi NZTA spokesperson said since the introduction of half-price public transport fares on April 1, public transport use has increased in the three largest centres.

Patronage in April this year was 84 percent of what it was in April 2021, up from 57 percent in March.