Petrol prices rise by another 3.5 cents per litre as new tax comes in

Monday, 1 October 2018

A new excise tax on fuel has further hike petrol prices nationwide by 3.5 cents per litre.

The tax, which came into effect on Sunday, is part of the Government's plan to raise the excise duty on petrol by 10.5 cents a litre over the next two years.

The fuel excise portion includes the national land transport fund, ACC motor vehicle account, local authorities fuel tax, petrol monitoring levy and in addition GST.

It will fund increased investment in safety upgrades, public transport, walking and cycling projects and regional roads. 

**READ MORE:

* NZ's first regional fuel tax arrives in Auckland

* Your civic (excise) duty: Auckland, we'll swap you a tram for a bridge

* How to beat Auckland's regional fuel tax**

In August, Transport Minister Phil Twyford said the Auckland regional fuel tax was needed to fill a $5 billion dollar hole in the already-established Auckland transport plan.

The tax would be used to fund roading improvements, busways, Mill Road and Penlink, and public transport initiatives.

The highest-profile feature of the $28b Auckland Transport Plan was an $8.4b investment in a rapid transit network that would include a light rail line between the CBD and the airport.

National Party leader Simon Bridges said the excise tax was the 'latest blow' to Kiwis' back pockets.

'Under this Government petrol prices have increased by 38 cents, meaning it now costs Kiwis an extra $20 each time they fill up their cars,' Bridges said.

'On top of this, ACC this week proposed a 12.1 per cent hike in the average motor vehicle levy for road users, including almost 2 cents a litre increase for petrol.

'At the same time the Government is spending billions of dollars on a tram in Auckland and sucking funding out of regional roads. People outside Auckland are paying more and getting less.'

Gull NZ planned to hold off passing on the tax to customers for a few days after the introduction of the excise.

Gull NZ spokesman Rohan Mehta said its petrol stock was bought prior to fuel excise tax increase.

'We think it's appropriate to pass on the pre-tax savings to our customers,' Mehta said.

'The fuel excise tax is inevitable, and we will be putting up our price.'

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