Govt scraps 2027 fuel tax hike, brings in new scheme for future hikes

The Government has confirmed the planned increase to fuel tax and road user charges next year will not go ahead. The 12c per litre increase from January 1, 2027, with equivalent increases to road user charges has been scrapped with the next expected increase of five cents per litre taking effect from January 1, 2028.Prime Minister Christopher Luxon and Transport Minister Chris Bishop revealed the decision during the post-Cabinet press conference at 2.30pm. A livestream will be played at the top of this article. “Cancelling next year’s fuel excise increase and spreading the change over time from 2028 will give Kiwis more time to recover from the period of post-Covid economic pain and recent uncertainty in the Middle East,” Finance Minister Nicola Willis said in a statement. It comes alongsi