Govt scraps 2027 fuel excise increase, smaller rises from 2028

<p>The Government has cancelled a 12 cents per litre fuel excise increase due to take effect next January, replacing it with a series of smaller rises phased in from 2028 to ease cost-of-living pressures.</p> <p>Prime Minister Christopher Luxon told a media conference that fuel excise had been set to resume annual increases with a 12c per litre rise from January 1, 2027, alongside equivalent lifts to road user charges. Instead, he said, the next increase would take effect from January 1, 2028 and would be 5c per litre.</p> <p>"Cancelling next year's increase and phasing in the change from 2028 gives Kiwis more time to recover from a prolonged period of post-Covid economic pain, and also ongoing global uncertainty around energy prices," Luxon said.</p> <p>He said the move followed the Government's earlier decision to cancel the previous Labour government's proposed fuel excise hikes and Auckland Regional Fuel Tax.</p> <p>Transport Minister Chris…