Fuel Prices and Taxes 2026

The story so far

In late August 2026 the Government scrapped a 12c per litre fuel excise increase that had been scheduled for January 2027, with a smaller five cent rise now expected from 1 January 2028.^{27, 31 Aug} Ministers said cancelling the increase would require over a billion dollars in extra borrowing, and the Government planned a $1.476b top-up to the National Land Transport Fund.^{31 Aug; 1 Sep} Labour promised not to raise fuel excise duty for a full term if it returns to government, though it has not disclosed the total cost of its freeze plan.^{27 Aug; 1 Sep} From September, petrol and diesel prices rose sharply, with the average price of 91-octane petrol up 51c in 28 days to just over $3.45 a litre, close to the highs set during the conflict between the United States, Israel and Iran.^{28 Sep} The rising prices began to weigh on business confidence, which eased two points in September, and on businesses' concerns about energy costs.^{30 Sep; 8 Oct}

Latest

Average 91-octane petrol prices reached $3.60 a litre and diesel about $3.23 a litre, described as record highs, and by mid-October the national average had risen 11% in 28 days to $3.80. Some motorists were paying more than $4 a litre for 95-octane petrol, including at a BP station in New Lynn, Auckland.^{12, 16 Oct}

What's next

Z Energy says fuel supplies are secure through the end of the year but warns that global stockpile depletion and geopolitical developments could push petrol and diesel prices higher.^{2 Oct}

Key moments

1. 31 AugGovernment cancels the 12c fuel excise increase planned for January 2027.
2. 1 SepLabour proposes a three-year fuel tax freeze without giving its total cost.
3. 28 SepAverage 91-octane price nears post-war highs after a 51c rise in 28 days.
4. 30 SepANZ survey shows business confidence easing as retail fuel prices climb 22%.
5. 5 OctPetrol price hits its highest level since the Iran war began.
6. 12 OctAverage 91-octane price reaches a record $3.60 a litre.
7. 16 OctNational average reaches $3.80, with some stations charging over $4 a litre.

Written from the stories below; each sentence links to its sources.