

Cut Fuel Taxes Now: Cancel ETS, Cap GST Pre-Conflict, 50% Excise Reduction


Cut Fuel Taxes Now: Cancel ETS, Cap GST Pre-Conflict, 50% Excise Reduction
The issue
Petition to the New Zealand Government: Immediate Relief on Fuel Costs – Cancel ETS on Fuel, Cap GST at Pre-Conflict Levels, and Cut Fuel Excise Duty by 50%
To: The New Zealand Government, Prime Minister, Minister of Finance, and Minister of Transport
We, the undersigned residents of New Zealand, call for urgent action to reduce the crushing burden of taxes and levies on fuel, which are driving up the cost of living for families, businesses, farmers, and essential services.
Background and Current Situation:
Fuel prices in New Zealand remain high due to global factors and domestic taxes/levies that make up a large portion of the pump price (often 40-50%). Key components include:
- Fuel Excise Duty (petrol): Approximately 70.024 cents per litre (plus ACC levy ~6c, monitoring levy, and local taxes in some areas).
- Emissions Trading Scheme (ETS) levy: Adds several cents per litre (variable, recently around 9-20c depending on unit prices).
- GST (15%): Applied on the full price, including all other taxes (a "tax on tax").
- Diesel users face Road User Charges (RUC) instead of excise at the pump.
Recent global events (referred to as "the conflict") have spiked prices, yet taxes continue to inflate costs for Kiwis. Temporary relief measures in the past showed that reductions are possible and effective.
Our Demands:
We petition the Government to implement the following immediately as interim relief measures:
1. Cancel the ETS levy on fuel (petrol and diesel): Remove the Emissions Trading Scheme costs passed on to consumers at the pump. The ETS is not effectively driving meaningful domestic decarbonisation in transport for many users and simply raises costs for everyday Kiwis without proportional environmental benefit in this sector right now.
2. Cap GST on fuel at pre-conflict price levels: Prevent GST from rising with global price spikes. Fix the GST component based on average fuel prices before recent conflicts (e.g., mid-February benchmark levels) so that tax revenue doesn't automatically increase when international costs rise. This stops the government from profiting off volatility.
3. Cut fuel excise duty by 50%: Immediately halve the petrol excise duty (from ~70c/L to ~35c/L, with corresponding adjustments for related levies where applicable). This provides direct, broad relief to motorists, businesses, and the supply chain that keeps food and goods affordable.
Why This Matters:
- Cost of Living: High fuel costs flow through to groceries, freight, farming, and all goods/services. Many households and small businesses are struggling.
- Fairness: Taxes should not disproportionately punish essential mobility, especially when alternatives like public transport aren't viable everywhere.
- Economy: Lower fuel costs support regional economies, tourism, primary industries, and reduce inflationary pressure.
- Precedent: Past temporary cuts to excise and other measures demonstrated quick relief without long-term harm to road funding.
These changes can be temporary (e.g., while prices remain elevated or until broader tax reform) or phased, with full transparency on how road funding is maintained.
Call to Action
We urge the Government to:
- Introduce legislation or regulation for these changes as soon as possible.
- Provide full public breakdown of fuel tax revenue and spending.
- Engage directly with affected communities, including rural and low-income groups.
Sign this petition to show your support and demand affordable fuel for New Zealanders.

97
The issue
Petition to the New Zealand Government: Immediate Relief on Fuel Costs – Cancel ETS on Fuel, Cap GST at Pre-Conflict Levels, and Cut Fuel Excise Duty by 50%
To: The New Zealand Government, Prime Minister, Minister of Finance, and Minister of Transport
We, the undersigned residents of New Zealand, call for urgent action to reduce the crushing burden of taxes and levies on fuel, which are driving up the cost of living for families, businesses, farmers, and essential services.
Background and Current Situation:
Fuel prices in New Zealand remain high due to global factors and domestic taxes/levies that make up a large portion of the pump price (often 40-50%). Key components include:
- Fuel Excise Duty (petrol): Approximately 70.024 cents per litre (plus ACC levy ~6c, monitoring levy, and local taxes in some areas).
- Emissions Trading Scheme (ETS) levy: Adds several cents per litre (variable, recently around 9-20c depending on unit prices).
- GST (15%): Applied on the full price, including all other taxes (a "tax on tax").
- Diesel users face Road User Charges (RUC) instead of excise at the pump.
Recent global events (referred to as "the conflict") have spiked prices, yet taxes continue to inflate costs for Kiwis. Temporary relief measures in the past showed that reductions are possible and effective.
Our Demands:
We petition the Government to implement the following immediately as interim relief measures:
1. Cancel the ETS levy on fuel (petrol and diesel): Remove the Emissions Trading Scheme costs passed on to consumers at the pump. The ETS is not effectively driving meaningful domestic decarbonisation in transport for many users and simply raises costs for everyday Kiwis without proportional environmental benefit in this sector right now.
2. Cap GST on fuel at pre-conflict price levels: Prevent GST from rising with global price spikes. Fix the GST component based on average fuel prices before recent conflicts (e.g., mid-February benchmark levels) so that tax revenue doesn't automatically increase when international costs rise. This stops the government from profiting off volatility.
3. Cut fuel excise duty by 50%: Immediately halve the petrol excise duty (from ~70c/L to ~35c/L, with corresponding adjustments for related levies where applicable). This provides direct, broad relief to motorists, businesses, and the supply chain that keeps food and goods affordable.
Why This Matters:
- Cost of Living: High fuel costs flow through to groceries, freight, farming, and all goods/services. Many households and small businesses are struggling.
- Fairness: Taxes should not disproportionately punish essential mobility, especially when alternatives like public transport aren't viable everywhere.
- Economy: Lower fuel costs support regional economies, tourism, primary industries, and reduce inflationary pressure.
- Precedent: Past temporary cuts to excise and other measures demonstrated quick relief without long-term harm to road funding.
These changes can be temporary (e.g., while prices remain elevated or until broader tax reform) or phased, with full transparency on how road funding is maintained.
Call to Action
We urge the Government to:
- Introduce legislation or regulation for these changes as soon as possible.
- Provide full public breakdown of fuel tax revenue and spending.
- Engage directly with affected communities, including rural and low-income groups.
Sign this petition to show your support and demand affordable fuel for New Zealanders.

97
Petition Updates
Share this petition
Petition created on 15 May 2026