Prime Minister Jacinda Ardern says Cabinet is set to discuss cutting the excise tax on fuel.
"We're discussing this today and we will move very quickly to speak to it soon after. But I do want to give cabinet the chance to have the discussion."
Petrol has crossed the $3 a litre mark, after rising global costs for oil due to Russia's invasion of Ukraine.
It comes as inflation hits highs not seen since the 1990s.
Ardern said it was clear there is a cost of living crisis for some families, and the government believed something needs to be done.
"I think the most important thing is, regardless of what anyone's calling it, it's whether or not we accept that there's something that needs to be done and we do."
She said a raft of measures would be coming in on 1 April. That package includes an increase to the family tax credit, raising benefit rates, and the winter energy payments.
"We are also concerned that, you know, there are some middle income New Zealanders for which, yes the Family Tax Credit will reach, and that increase will benefit, but when you look at the energy crisis, it is acute right now."
Speaking specifically on fuel excise she said any drop in the amount collected would affect transport projects and maintenance, and would need to be carefully considered.
"Every cent of excise goes to transport projects or maintenance of our roads and was already under increasing pressure. But we're looking at a range of options, because, as I say, it is an acute energy crisis we're seeing right now as a result of the war in Ukraine. And you can see just that incredible increase over very short periods of time."
