The Act Party says we have to find a way to compensate people for skyrocketing fuel prices

Petrol's expected to hit four dollars a litre because of sanctions imposed on Russia, due to its invasion of Ukraine.

Act leader David Seymour says some people are going on the dole rather than taking their car to work.

He says families should get a carbon tax dividend of about 750 dollars, which wouldn't take money from health, police or education.

Seymour says it would take money from the Emissions Trading Scheme, ring-fenced for unnecessary climate projects, and give it back to people who already have enough incentives to save petrol.