New Zealand First has announced plans to remove the climate change charge from petrol and diesel, promising motorists savings of up to 14 cents a litre.

The party wants to abolish the fuel component of the Emissions Trading Scheme (ETS) during the next term of government, arguing it is placing an unnecessary financial burden on households and businesses.

Under the proposal, petrol would become approximately 12 cents a litre cheaper, while diesel prices would fall by around 14 cents a litre.

The party claims New Zealand consumers and businesses have paid approximately $850 million over the past year to cover carbon credits associated with the scheme.

NZ First said the cost was particularly difficult for industries reliant on diesel, where alternatives remained limited.

“There is no substitute for diesel for industry. Likewise, ordinary consumers have suffered too much with the cost of petrol.”

The party also attacked Labour and the Greens over their approach to climate change, warning that a future government involving both parties could increase the cost of fuel through higher carbon prices.

“People need to understand that when you propagate woke green ideology, it costs New Zealanders while delivering us nothing.”

NZ First claimed ETS charges reached approximately 20 cents a litre during the previous Labour government, costing consumers around $1 billion.

The ETS requires fuel suppliers to account for greenhouse gas emissions associated with the fuel they sell, with the costs generally passed on to consumers at the pump.

Ministry of Business, Innovation and Employment fuel pricing figures for September put the ETS component at approximately 12.4 cents a litre for petrol and 13.9 cents for diesel, broadly consistent with the party’s proposed savings.