Cost of Living

Government cancels January fuel tax increase, Labour promises three-year freeze

The government will not proceed with a scheduled fuel tax rise in January 2027, and Labour has committed to no increases for three years if re-elected.

Skinny McBuntu

Finance Minister Nicola Willis has confirmed the government will abandon a planned fuel tax increase scheduled for January 1, 2027, though the decision still requires Cabinet approval. Labour has gone further, pledging not to raise fuel taxes for a full three-year government term if elected in November's election. The moves follow concerns about the cost-of-living impact on New Zealand drivers.

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Coverage across the news outlets we track, as at publication.

What outlets are saying

Stuff

Nicola Willis confirms no fuel tax increase in January, Labour promises none for three years

The Finance Minister has confirmed the government will not go ahead with a scheduled fuel tax increase on January 1, 2027 – but signalled Cabinet still needs to agree to the move.

Read the full story at Stuff

1News

Labour promises not to increase fuel tax for three years

"New Zealanders simply cannot afford an extra 22 cents a litre on their fuel bills every time they fill up the car," says Chris Hipkins.

Read the full story at 1News

interest.co.nz

Upcoming fuel excise increase off the table, Labour rules out increase for three years

Labour rules out increase in fuel excise tax if elected in November's election, government says it won't go ahead with 2027 raise

Read the full story at interest.co.nz

Newstalk ZB

Dom Kalasih: Transporting NZ CEO on Labour ruling out increasing fuel taxes for three years if elected

Hopes the roading system isn't put at risk if fuel tax increases are paused.

Read the full story at Newstalk ZB