New Zealand
OPINION: You’re Paying More for Petrol and the Government’s Loving It


Published by Duncan Garner
24 Mar 2026
Every time petrol goes up, someone wins. It’s not you.
For every 10 cent jump, the government pulls in about $60 million in extra GST.
No new tax. No debate. No announcement. It just rolls in.
You’re paying more. They’re making more. That’s the deal.
And right now, with prices climbing fast, that money is stacking up by the day. Twenty cents. Thirty. Forty. This isn’t small change. This is hundreds of millions landing in government accounts without anyone having to front up and explain it.
Half your tank isn’t fuel
Let’s be clear about something most people already suspect.
Nearly half of what you pay at the pump isn’t petrol. It’s tax.
About $1.30 a litre goes straight to the government before you’ve even turned the key. Fuel tax, levies, carbon charges. Then GST gets slapped on top of all of it.
Yes. A tax on a tax.
We’ve normalised it, but it’s absurd when you stop and look at it.
Why they won’t touch it
So why not cut it?
Why not drop the excise. Remove GST. Give people some real relief.
Because high prices are doing a very good job for the government.
They keep demand under control, which matters when supply is tight. And they quietly boost revenue without the political pain of introducing anything new.
It’s the easiest money you’ll ever make in politics.
Instead, we get targeted support. Help for some. Relief for a few.
And the rest of the country just absorbs it.
Hear the full take here:
The bit no one wants to say
This is the truth sitting in plain sight.
Every time petrol goes up, the government wins.
Families feel it immediately. Businesses pass it on. The cost of living creeps higher again.
And in the background, the tax take rises automatically.
No press conference. No accountability. Just a system doing exactly what it was designed to do.
We’re being taxed twice at the pump and told to be grateful for the refund.
If this is a crisis for households, it’s a pretty good one for the government.
Watch the full breakdown:

Published by Duncan Garner
24 Mar 2026