New Zealand Labour Party says it will scrap the New Zealand National Party’s fuel excise tax increase while fuel prices stay elevated, citing ongoing cost-of-living pressures. Party leader Chris Hipkins said petrol prices have risen 33.6% and diesel 94.9% in two months, adding pressure on households and businesses amid wider cost increases.
The New Zealand Labour Party has announced that it would reverse the National Government’s planned fuel excise tax increase, citing rising fuel costs and ongoing cost-of-living pressures on households and businesses. The announcement was made on 15 May 2026 by Labour Leader Chris Hipkins.
According to Labour, recent data shows significant increases in fuel prices over the past two months, with petrol prices rising by 33.6% and diesel prices increasing by 94.9%. The party argued that the increases are placing additional pressure on households and sectors heavily reliant on transport and fuel, including trucking, farming, and trade services.
Hipkins said the Government had failed to respond adequately to rising costs affecting businesses and consumers. He also pointed to broader economic pressures, including electricity prices rising by 20% over the past two years and business liquidations reaching a 15-year high.
Labour said removing the fuel excise tax increase would provide relief to families and businesses facing higher living and operating costs. The party criticised Prime Minister Christopher Luxon and Finance Minister Nicola Willis, arguing that the Government had not delivered on promises to reduce cost-of-living pressures.
The announcement comes ahead of the Government’s upcoming Budget, which Labour described as a key opportunity for the Government to outline measures aimed at easing financial pressures on New Zealand households.
