Wellington, April 21 (NationPress) - New Zealand is set to roll out financial assistance aimed specifically at small, rural, and isolated schools to alleviate the burdens posed by escalating fuel prices, as noted by a senior government official.

"The fluctuations in global fuel prices have adversely affected certain schools, especially those that depend on diesel, and where students have to travel long distances for their education," stated Education Minister Erica Stanford in a recent announcement.

The government plans to allocate 37 million NZ dollars to replace diesel boilers in as many as 70 schools across the country. This initiative is projected to decrease annual diesel consumption by approximately 600,000 litres, thus insulating schools from future fuel price instability, as reported by Xinhua news agency.

Every school with fewer than 100 students will receive a one-time cash grant of 2,500 NZ dollars, according to Stanford.

The transport assistance will also see enhancements, with reimbursement rates for relief teachers more than doubling and a 30 percent increase in conveyance allowances for eligible families, impacting around 5,000 students, she mentioned.

The increased mileage rates will remain in effect for a maximum of 12 months or until fuel prices drop below 3 NZ dollars per litre for four consecutive weeks, Stanford added. (1 NZ dollar equals 0.59 US dollar)

Earlier on Friday, Stats NZ revealed that fuel prices in New Zealand had surged in March, while food costs experienced a modest annual increase.

According to the statistics department, petrol and diesel prices rose by 18.6 percent and 42.6 percent respectively from February to March, marking the largest increases since the commencement of monthly tracking in July 2011.

This uptick followed declines for both fuel types in January and February. On an annual basis, petrol prices have increased by 13.9 percent, while diesel saw a rise of 36.9 percent.

Meanwhile, domestic airfares have decreased by 14.4 percent month-on-month and by 7.3 percent over the past year, while international fares rose by 3.5 percent in March and 9.8 percent annually, as per the statistics.

"Typically, travelers book and pay for airfares in advance, so price changes reflect fares set up to 12 months ago," remarked Nicola Growden, spokesperson for Stats NZ prices and deflators.

Food prices have risen by 3.4 percent in the year leading to March, down from a 4.5 percent annual increase recorded in February. The annual increase was primarily driven by a 7.3 percent rise in the prices of meat, poultry, and fish, according to Stats NZ.

On a monthly basis, food prices saw a slight decline of 0.6 percent in March compared to February, attributed to cheaper fruits and vegetables like kiwifruit, along with reduced grocery prices for items such as chocolate and cheese.