BIG OIL must just LOVE Kiwi PM Ardern
The Kiwi Prime Minister just got jumped into slashing fuel taxes to relieve the "cost-of-living crisis". Within a day of doing so, oil prices fell 6%. Yes, our PM has helped Kiwis pour back to the pump, drive more and release greenhouse gases. Not only that, but her fuel tax cut takes the pressure off oil companies to slash gas prices should the cost of oil fall more. Yes, her price cut has helped big oil make bigger profits and has worsened the environment.
Given there's quite a good chance of a peace deal being signed in the not-too-distant future between Ukraine & Russia, as the latter's war effort stalls & President Putin tries to save face by telling his fellow Russians that he won a "big" concession (like Ukraine not joining NATO), oil prices could be about to fall more. But in NZ, big oil is now under way less pressure to pass on any drops in the price of oil to consumers than before the government's fuel tax cut.
Which just goes to show the mess you get into when you run economic policy on opinion polls, PR & Comms teams and abandon your principles, as the Ardern government just went and did when it slashed fuel taxes yesterday.