Budget 2026: Targeted Support and Fuel Resilience Amid Global Crisis

The Budget supports the Government’s prudent response to the global fuel crisis, with temporary targeted support and provision for further action if needed.

Since the outset of the conflict, our approach has been to stay ahead of risks to New Zealand’s fuel supply, keep the economy moving, and support those most affected by higher fuel prices with temporary, targeted and timely measures, Nicola Willis says.

The Budget provides: Additional funding for Fire and Emergency, Corrections, Police, Customs and Education to maintain frontline operational activities in the face of sustained fuel price increases The $50 a week increase to the In-Work Tax Credit for up to a year to help working families with increased fuel costs Funding of $150 million for additional strategic fuel reserves to firm up New Zealand’s fuel resilience The temporary increase in mileage rates for support workers and people travelling for specialist treatment Support for public transport authorities to help manage fuel costs pressures and maintain services; and A $450 million reserve for additional temporary targeted support if conditions worsen.

The situation in the Middle East remains uncertain, so it is prudent to be ready should fuel prices rise further and add more pressure to households and businesses.

The Middle East conflict underscores the need for fiscal discipline. Our ability to withstand global shocks depends on the strength of our financial buffers.

Budget 2026 provides sensible support to those most affected by rising fuel prices in a way that is affordable for the country, so we can continue rebuilding our buffers and restoring New Zealand’s financial security, Nicola Willis says.