Petrol prices in New Zealand have surged significantly, exceeding NZ$3.00 per litre as of April 2026, marking a 20% increase in only a few weeks. Small businesses, particularly in sectors such as agriculture, forestry, and trades, may experience tightened profit margins due to these rising fuel costs. However, many business owners may be unaware that they could be paying a road tax, known as Fuel Excise Duty, for fuel that is not used on public roads.
For businesses utilizing petrol for off-road machinery or commercial vessels, there exists an opportunity to reclaim this tax. Refund amounts can range from NZ$3,000 to NZ$20,000, benefiting cash flow significantly. The Fuel Excise Duty is applied to every litre of petrol, aimed at funding road maintenance, but those using petrol for agricultural equipment, landscaping tools, or marine operations may qualify for refunds of 76 cents per litre plus GST.
Navigating these claims can be complex, and many accountants may lack the specialized knowledge required to maximize returns. PR Claims, a dedicated service in New Zealand, assists businesses in efficiently navigating Fuel Excise Duty refund claims. They employ a success-based model, eliminating upfront fees, and can look back historically for unclaimed funds from up to two years prior.
Furthermore, PR Claims integrates seamlessly with Xero accounting software. By linking their accounts, businesses can automate the refund process with ease, pulling necessary fuel invoice data directly from their Xero transactions. Xero users who connect through the Xero App Store also receive a discounted service fee.
Why this story matters
- The surge in fuel prices directly impacts small businesses’ operating costs.
Key takeaway
- Businesses using petrol for non-road purposes can reclaim substantial Fuel Excise Duty refunds.
Opposing viewpoint
- Some may argue that the tax serves vital infrastructure needs and should not be eligible for refunds.
