'Incredibly volatile' - long road to travel before fuel relief payments stop, says PM

The prime minister says there is a long way to go before fuel relief payments will stop, as fuel prices finally drop below the $3 mark for the first time since March.

The government announced in April that about 143,000 people have been getting an extra $50 a week through the in-work tax credit to help ease the pressure at the pump.

A further 14,000 would receive support, but at a lesser rate.

The policy - the government has often repeated - is "temporary, targeted, and timely." If fuel prices stay below $3 for four consecutive weeks, the payments stop.

Gaspy, which tracks gas station prices, showed the average price of 91 petrol in New Zealand had dipped below $3 on Monday morning, the lowest price since 16 March.

But the prime minister said there was a long way to go before the government ended the "deal" it had made with New Zealanders.

"What we're seeing is it's incredibly fragile, it's incredibly volatile, every 24 hours it's changing," Christopher Luxon said.

Shortly after the original announcement, the government also announced support for care and support workers, increasing their mileage rates by 30 percent.

That support would also cease if the price of 91 octane petrol fell below $3 for four consecutive weeks.

Labour leader Chris Hipkins said he had an issue with that support being temporary in the first place.

"They're being paid well below what they should for mileage. It's ultimately a cost for them to get to and from their jobs. That would have been dealt with had the government not cancelled their pay equity claim," he said.

Hipkins said nobody knew whether fuel prices would stay this low for four weeks.

"If anybody has a crystal ball that can tell us what's going to happen with the Strait of Hormuz over the next few months, I'd love to hear from them."