Six ways the Luxon Government made this global oil crisis hit harder at home.
Petrol is currently pushing $3 a litre in New Zealand.
Prime Minister Christopher Luxon has a Tesla. Or his wife does. So he’s sorted.
What about the rest of the country?
Here are six decisions Luxon’s Government made that have caused this global oil shock to hurt Kiwis more than it needed to. Plus one final doozy – coming soon – to lock us into yet another volatile global fossil fuel market.
1. They crashed the electric car market
Within months of taking office, the Luxon Government scrapped the Clean Car Discount, which gave people rebates for buying EVs or low-emissions cars. Luxon’s family already received thousands under the scheme for their new Tesla. Soon after, the scheme was gone.
The collapse in the EV market was instant:
- In 2023, about 1 in 4 new cars sold in New Zealand were electric.
- In early 2024, that plummeted to around 1 in 26.
Instead of helping households escape high petrol prices and reduce national reliance on imported oil, the Luxon Government pulled the plug on EV incentives.
2. They’re turning New Zealand into a dumping ground for petrol-hungry, dirty cars
The Luxon Government cut fees for importing gas guzzling cars by nearly 80%. Those fees were designed to discourage the dirtiest, most petrol-hungry vehicles. Officials warned the change would cost Kiwi drivers an extra $115 million at the pump because the vehicle fleet would burn more fuel. Luxon’s Government did it anyway.
Now the Government is considering scrapping the clean car standard entirely, removing all financial disincentives for high-emission imports. The result: New Zealand risks becoming a dumping ground for the world’s most petrol-hungry and dirtiest cars – vehicles other countries are trying to get rid of.
3. They scrapped Auckland light rail and Wellington’s low-emissions transport plan
The government cancelled Auckland Light Rail which would have given the country’s biggest city a real alternative to sitting in traffic and taken around 14,500 cars off the road. Now Auckland remains one of the most car-dependent cities in the developed world. Wellington also had a plan to invest in better public transport, safer cycling and walking, and less congestion. The government killed it off. Another chance to reduce oil dependence – gone.
4. They slashed funding for public transport, walking and cycling and poured billions into roads instead
The government ended half price public transport fares for young people. Then, they slashed funding for public transport, walking and cycleways while pouring billions into 17 roads of “national significance”. The total cost of those roads has now blown out to between $44 – $54 billion. More roads, less public transport and cycleway infrastructure means more people forced into cars and more exposure to global petrol prices spikes.
5. They Scrapped the GIDI Decarbonisation Fund
The Government Investment in Decarbonising Industry (GIDI) fund helped businesses to switch to more efficient energy sources and was one of the ways to reduce New Zealand’s reliance on volatile imported fossil fuels. The Luxon Government cancelled it and replaced it with… nothing.
Now they want to build a new fossil gas LNG import terminal
We don’t need any new fossil fuels to maintain our energy security out to 2050. That was the clear finding from a 2024 MBIE report which also confirmed wind and solar are the cheapest sources of new electricity generation.
Despite that, the Luxon Government has cooked up a ludicrous plan to build a multi-billion-dollar LNG import terminal, which they want to make New Zealanders pay for via a new gas tax on our power bills. This dirty LNG terminal would lock us into more fossil fuel dependence and expose New Zealand to another volatile global gas market – one that we are currently shielded from.
The Bottom Line
Oil and gas price spikes happen. They always have and they always will.
The bottom line is – we need to end fossil fuels. For the climate and for the cost of living.
Policies that slow the transition away from fossil fuels both worsen the climate crisis and lock households into paying whatever the global oil and gas market demands.
Right now that price is $3 a litre. And most Kiwis – unlike the Prime Minister – don’t have a Tesla to escape it.
Sign the petition to stop the LNG terminal and demand a clean energy future.
We call on the Government to reject plans for an LNG facility, invest in renewables & embrace a Clean Energy Future for NZ
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