Eu Day Light

New Zealand Prime Minister Luxon announced that the fuel tax increase planned for 2027 had been canceled.

Luxon said the measure would prevent an increase of 12 New Zealand cents per liter from being passed on to consumers. He also noted that the government had previously canceled fuel tax increases planned by the Labour Party as well as the Auckland Regional Fuel Tax.

Luxon said economic conditions remained difficult for many New Zealanders and that the measure would help ease pressure on household budgets.

Prime Minister Luxon said the fuel tax would need to be increased again over time, with the first increase planned to begin in January 2028 at 5 cents per liter.

Luxon said funding for road maintenance, public transport services and infrastructure investment in the transport system needed to continue, adding that the loss of revenue would be offset by providing additional funding to the transport authority.