National leader Christopher Luxon has attributed the Government's fuel tax cut to "pressure" from the Opposition, the media and the public.
The Government announced on Monday that 25 cents per litre of fuel will be slashed from petrol taxes and public transport costs will be halved for an initial three months to help ease the financial pressure at the pump.
It came after the Opposition declared a "cost of living crisis" with inflation at 6 percent - a three-decade high - and the cost of unleaded petrol more than $3 per litre in parts of New Zealand, sparked by Russia's invasion of Ukraine.
Speaking to AM last week, Prime Minister Jacinda Ardern stopped short of describing the rising cost of living as a "crisis", but on Monday she conceded that the high cost of fuel "represents a crisis for many families, absolutely".
The Government is now facing accusations of caving under pressure.
Mum of five Krystine Nation, who last week told AM her family's food bill had increased $7000 in the last year, indicated to the show on Monday that she felt the announcement was more of a reaction from Ardern than an admission that times are tough.
When asked to give a 'thumbs up' if the Government's cut to fuel taxes was genuine or give a 'thumbs down' if it was caving under political pressure, Krystine gave a thumbs down.
Luxon said on Tuesday the Government's announcement was political.
"I think the Government's highly reactive. I think it's reacting to the media, I think it's reacting to the public and I think it's reacting to the Opposition," he told reporters at Parliament.
"A week ago we didn't have a cost of living crisis. Now we have one and there's a concession being made. I think that's been the reality of this Government over the last year. It just reacts to the pressure that comes from the Opposition and from the media and from the public."
He pointed to the border opening up, changes to vaccine passes and mandates, and visas for family members of Ukrainians in New Zealand, as other examples of the Government responding to pressure.
"It's a reactive Government. It doesn't have a plan. It's making it up as we go along and it's just responding to the stimulus it gets in front of it and that changes each given week."
Luxon's solution to the rising cost of living, income tax cuts, has also come under scrutiny because a $40,000 earner would only get an extra $2.15 a week.
National has proposed lifting the income tax brackets by just over 11.5 percent to match the 11.5 percent increase in the cost of living over the last four years.
The most typical salary in New Zealand is about $55,000, according to the Average Salary Survey. Those earning $55,000 would save about $800 a year if National's tax changes were applied but someone earning $45,000 would only get about $112.
"What I would contest is the National Party's proposal to take away essentially $26 per week from someone earning under $40,000 - because they voted against our increases to the Family Tax Credit - and instead replace it with $2.15," Ardern said in Parliament last week.
Ardern hopes increases to the benefit, minimum wage and Family Tax Credits in April, as well as the Winter Energy Payment in May, will help to ease cost of living pressures.
National also plans to scrap Labour's new top income tax rate of 39 percent on each dollar earned above $180,000, meaning if Luxon was Prime Minister, he would receive an $18,000 income tax reduction from his proposed tax changes.
Luxon argues that the Government's fuel tax reduction is a start, but with food prices up more than 13 percent and weekly rent up $150, more needs to be done.
Finance Minister Grant Robertson said on Tuesday the fuel tax reduction was "significant" and "called by some observers a 'once-in-a-generation' type move".
"I think people when they go to fill up their cars over the coming months will be pleased that we've done this," Robertson told reporters. "That doesn't mean it's the only thing we need to be doing and it's not."
Robertson has given himself $6 billion in new money for Budget 2022 and he confirmed on Tuesday public transport "will be a focus" of the new Climate Emergency Response Fund, which will spend proceeds from the Emissions Trading Scheme on initiatives to combat climate challenges.
The fund is expected to get $4.5 billion in Budget 2022 out to 2026.
Robertson wouldn't confirm if halving the cost of public transport permanently was under consideration for Budget 2022. He said the public will just have to wait until May 19 when it's released.
