Auckland's double-whammy fuel tax will cost average driver $250 more per year

Wednesday, 4 April 2018

Aucklanders could be facing a double-whammy fuel tax of 10c per litre from Auckland Council and perhaps another 10c petrol increase from the Government.

Auckland's poorest citizens will 'regrettably' pay the most in the short term for what's effectively the city's double-whammy fuel cost increase, the Salvation Army said.

The head of the charity's social policy and parliamentary unit, Lieutenant Colonel Ian Huston, said he had 'some concerns' about the cost of transport for people on limited budgets.

On Tuesday, Transport Minister Phil Twyford said the Labour-led Government wanted a fuel excise duty increase of between nine and 12 cents a litre to fund billions of land transport planning, focussing on road safety and rapid rail.

That, combined with Auckland Council's regional fuel tax could see Auckland motorists paying upwards of 20 cents per litre more for petrol.

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Transport Minister Phil Twyford announced Tuesday the Government wants a fuel excise duty increase of between nine and 12 cents a litre.

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* Govt reveals fuel tax proposal

* Auckland Regional Fuel Tax closer

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Increasing the fuel excise duty on top of Auckland's coming regional fuel tax would effectively cost the average Auckland motorist $250 extra per year, the AA said.

On Wednesday, Hutson said he was concerned car-dependent families struggling to meet costs would first cut food spending, then power to defray the increased costs of getting to and from work.

The Salvation Army, which nationwide helps about 120,000 families per year, had experienced an increase in demand for food parcels due to rising living costs, Hutson said.

In 2017, the Automobile Association (AA) found a 10 cent per litre regional fuel tax would cost the average Auckland motorist, driving an average car, an extra $125 per year.

Increasing the fuel excise duty would effectively double that to $250 per year, the association said.

'To people that have got plenty of money, $250 for a whole year doesn't seem a lot, but to people on low wages or a benefit it accumulates and it will have an impact on people,' Hutson said.

'Medium to long term' it was hoped fuel tax dollars poured back into public transport infrastructure would provide better, cheaper transport options for low-income families, he said.

AA infrastructure and Auckland spokesman Barney Irvine said it would be 'ridiculously complicated' for the Government to attempt to mitigate taxing Aucklanders twice for fuel.

Fixing Auckland's spiraling traffic congestion is one reason the Government wants to increase the fuel excise duty.

'No one wants to pay more tax, we hear loud and clear from our members the concerns their households are facing as a result of taxes already.

'Of course our hackles go up the moment we see the possibility of hikes, but that said, the question is 'what is all this extra money going to be spent on?'

'We still don't have clarity [from the Government] on that.'

The AA also needed to consult its members on what they expected in return from fuel tax increases.

'This is a really emotive issue, you get out of touch with the public and there's always going to be the risk of political damage,' Irvine said.

Transport Minister Phil Twyford has been approached for comment.

TERSE TAX RESPONSE

A snapshot of Neighbourly Auckland member comments on Wednesday mostly angrily opposed the Government's fuel tax proposal.

Richard Brown from Epsom was 'unimpressed' by the government's move.

'One of the many stealth taxes to come in under Labour. All those who think it's a great idea, please feel free to give your money to the government. I won't be voluntarily,' he said.

Henderson's Linda Oudshoorn said she could 'barely afford to get to work now'. Public transport didn't work for everyone, she said.

Waterview's Catherine Gow said people's living costs were already going up before more fuel price rises.

'Is the idea to make us all use the stupid cycleways and unreliable public transport?' she asked.

Carolyn Symonds, from Hillsborough, said she and her spouse – who has Parkinson's disease – could not ride bikes.

It would be 'years and years' before North Shore residents would see any public transport benefit from increasing fuel taxes, Browns Bay resident Katrina Mora said.

'We are already paying for the rest of Auckland that sat on their laurels for the past decades when North Shore was already paying higher rates.'

Galia Gracheff from Mt Eden was resigned to the double fuel tax going ahead.

'Pushing fuel price up at a cost of an average citizen is very greedy – I guess there isn't much we can do about it. Once decided, they will just go with it,' she said.

Bryan Pullman from Swanson said he was 'all for additional fuel taxes' to fund public transport.

If enough drivers migrated to public transport, those remaining in private vehicles should enjoy faster journeys too, Pullman said.

Auckland councillors and Auckland Transport staff should also have their reserved parking removed to help 'sharpen their thinking' about creating better public transport, he said.

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