New Zealand First has unveiled a major election promise to remove the emissions trading charge from petrol and diesel, claiming the move would immediately reduce fuel prices by between 12 and 14 cents a litre and provide much-needed relief to households, businesses and industries struggling with rising costs.
The announcement, made on Saturday, October 24, comes as political parties intensify their campaigns ahead of the November 7 general election, with the cost of living emerging as a central issue for voters.
Under the proposal, New Zealand First would remove the cost associated with the Emissions Trading Scheme (ETS) from transport fuels during the next parliamentary term.
The party estimates the change would reduce petrol prices by approximately 12 cents a litre and diesel prices by 14 cents a litre, although actual savings would depend on carbon prices and how changes were passed through to consumers.
$850 Million Cost to Consumers, NZ First Claims
New Zealand First says the ETS has imposed an estimated $850 million in costs on fuel consumers and businesses over the past year, with those costs associated with the purchase of carbon credits.
The party argues that the additional cost places unnecessary pressure on families, transport operators, farmers and businesses already struggling with high operating expenses.
Diesel is particularly important for the freight, agricultural and manufacturing sectors, where fuel costs influence the price of transporting goods, producing food and delivering essential services.
New Zealand First says removing the charge would provide direct financial relief while helping reduce costs throughout the wider economy.
For a household purchasing 50 litres of petrol, the party’s estimated 12-cent reduction would represent a saving of approximately $6 per fill, assuming the full reduction reached the pump.
Climate Policy Back in the Election Spotlight
The proposal also signals New Zealand First’s wider opposition to aspects of the country’s climate change framework.
The ETS places a price on greenhouse gas emissions, creating a financial incentive for businesses and consumers to reduce their carbon footprint.
Fuel suppliers face emissions-related obligations, with associated costs generally reflected in retail fuel prices.
New Zealand First argues that these costs are excessive and place an unfair burden on consumers, particularly when New Zealand relies heavily on imported fuel.
The party has also questioned the economic consequences of the Paris Agreement and has separately campaigned for New Zealand to withdraw from the international climate accord.
However, removing the ETS cost from fuel would raise questions about how New Zealand intends to meet its emissions reduction commitments and whether alternative measures would be introduced to offset increased emissions.
Supporters of emissions pricing argue that it encourages investment in cleaner technology and lower-emission transport, while critics question its impact on household budgets and business competitiveness.
What Could It Mean for Māori Whānau?
For Māori whānau, particularly those living in rural communities where public transport options are limited, fuel costs can have a significant impact on household budgets.
Long distances to workplaces, schools, medical appointments and essential services mean many families have little choice but to rely on private vehicles.
The cost of diesel also affects rural businesses, agricultural operations and the transportation of goods across regional Aotearoa.
Any reduction in fuel prices could provide some immediate relief, although the longer-term implications for climate policy, infrastructure and environmental protection would also need to be considered.
For Māori communities facing the impacts of flooding, coastal erosion and severe weather, the debate highlights the challenge of balancing affordability today with resilience and environmental responsibilities for future generations.
A Clear Election Choice on Fuel and Climate
New Zealand First says the carbon price has previously been substantially higher than its current level, meaning the cost passed on through fuel prices can fluctuate.
The party claims that under a Labour-Green government, ETS-related costs could rise again, although future carbon prices would depend on policy settings and market conditions.
The announcement places fuel affordability and climate policy firmly into the election debate.
With advance voting beginning on Monday, October 26, New Zealand First is asking voters to consider whether reducing fuel costs should take priority over retaining emissions pricing on petrol and diesel.
The proposal remains an election commitment rather than an enacted policy, and its ultimate impact would depend on the details of any legislation and the decisions of the next government.
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