The government has hit the brakes and made a massive U-turn on its decision to put an end to the fuel tax subsidy and half price public transport.
With people feeling the pinch of the cost of living crisis, the government has extended both subsidies beyond the end of this month, with the discounts now slated to finish at the end of June.
Finance Minister Grant Robertson told reporters last month that it wasn't sustainable to continue the subsidies.
Infometrics director and principal economist Brad Olsen says the extention of the fuel tax subsidy is "extremely dumb economic policy", and the government is essentially trying to buy votes.
He spoke to Corin Dann.
