Prime Minister Jacinda Ardern described the current situation as a "global energy crisis" after Russia's invasion of Ukraine.
Cabinet had decided today to reduce fuel excise duties and road user charges by 25c a litre each, for the next three months. The change takes effect from 11.59pm tonight.
All public transport fares will also be halved from April 1 for three months.
"We are in a wicked perfect storm," Ardern told reporters at her post-Cabinet press conference.
Finance Minister Grant Robertson has said that the Cabinet wanted to support people through the global energy shock.
But one major fuel company has jumped the gun, announcing it will impose the price reduction immediately.
Mobil said it would not wait until midnight, instead reducing prices across all petrol grades by the same amount straight away.
(Excerpts : nzherald.co.nz)