The fuel tax subsidy extension has alleviated fears from the trucking sector.

Prime Minister Chris Hipkins yesterday announced the fuel price subsidy, and half-priced public transport fares will be extended until the end of June.

The extension, originally due to end in March, is estimated to cost $718 million.

Prior to the extension, trucking groups said that had it ended in March, consumers would eventually end up having to pay more for freight costs.

Gull general manager Dave Bodger told Mike Hosking those fears are unfortunately realistic.

He says fuel is a major component of heavy transport, and they do need to pass fuel prices on.

LISTEN ABOVE