Suppressing fuel prices simply doesn’t fit the narrative of massive electric vehicle adoption (including subsidies of up to NZ$8,625 per vehicle intended to boost sales). But there are alternatives to price caps that won’t interfere with our climate goals. The problem with price capsThere are other, wider questions about the efficacy of price caps and their potential to achieve the opposite of what is intended. At around $50 a week, the average household fuel bill is less than 4% of total weekly spending. That will likely drop further if fuel prices stabilise while inflation continues to pressure mortgage rates and food costs.

Source: Stuff November 11, 2022 01:06 UTC