New Zealand Delays Fuel Tax Hikes Until 2028

The New Zealand government announced a decision on Monday to delay scheduled fuel tax increases to provide short-term relief for motorists. The original plan called for a 12-cent increase in January, followed by annual hikes of 6 cents and 5 cents through 2029. Under the revised schedule, taxes will instead rise by 5 cents every six months starting in 2028.

Economists warn that these measures may not significantly lower costs, as petrol prices are unlikely to return to pre-conflict levels. Ongoing tensions between the United States and Iran, combined with the functional closure of the Strait of Hormuz, continue to pressure the market.

While nationwide averages for 91 petrol have recently dipped to approximately $3 per litre, experts note that depleted global oil inventories and increased refining spreads will likely keep prices elevated in the near term.