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Auckland fuel tax exemption for Waiheke and Gt Barrier?

Friday, 13 April 2018

Auckland Central MP Nikki Kaye says residents on Waiheke and Great Barrier already pay more than other New Zealanders for fuel.
Auckland Central MP Nikki Kaye says residents on Waiheke and Great Barrier already pay more than other New Zealanders for fuel.

Motorists on Auckland's Waiheke and Gt Barrier islands could skip having to pay a regional fuel tax if Auckland Central MP Nikki Kaye gets her way.

She is vowing to challenge the islands' inclusion in the Auckland Council fuel tax Bill.

Government is introducing a nationwide fuel tax of 13.8 cents per litre and Auckland Council has introduced a Bill for a regional fuel tax of around 10 cents per litre.

It means motorists in Auckland, including those on both Hauraki Gulf islands, will be paying almost 25 cents per litre more if the regional tax goes ahead.

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Oneroa BP owner Paddy Cumming said fuel taxes would hit Waiheke hard.
Oneroa BP owner Paddy Cumming said fuel taxes would hit Waiheke hard.

It's expected the tax would collect around $170 million per year to go toward fixing Auckland's congested transport infrastructure.

Most islanders do not take their cars to Auckland so largely depend on public transport to get around.

A litre of 91 costs $3.11 on Great Barrier Island.
A litre of 91 costs $3.11 on Great Barrier Island.

The petrol price hike will hit motorists on the islands particularly hard as costs have always been above the Auckland and national average.

Motorists filling up with 91 at Z stations in Auckland pay on average $2.139 cents per litre, according to website PriceWatch.

Auckland's BP and Gas Alley prices are even cheaper at $1.92 and $1.93 respectively.

But on Waiheke the 91 fill-up at Z, BP and G.A.S. costs around $2.35 per litre.

Waiheke petrol station owners say the higher prices are because of transportation costs.

The current price of 91 on Great Barrier is a whopping $3.11 per litre.

'These tax increases will be particularly harmful for Great Barrier and Waiheke, where residents are already paying significantly more for petrol than other New Zealanders,' Kaye said.

'National opposes both increases in fuel tax.' 

'I will be putting up a specific legislative amendment to make Great Barrier Island and Waiheke Island exempt from the regional fuel tax as this will come before parliament via legislation.'

National raised fuel taxes several times when it was in government.

Auckland Central residents, commenting on Neighbourly Waiheke Island - Waiheke Island about the regional tax, had a variety of views.

Greg Giles said motorists would adjust to the tax increases and there would be no reduction in traffic congestion, while John Sweetman thought the tax was a great idea.

'Just like bumping up the duty on tobacco it gets people thinking about their choices,' he said.

'Drive an electric car, use public transport, ride share or get things delivered.

'The alternative is pay for the privilege of clogging up the roads with petrol powered vehicles.'

Hannah Neilson said a means-based tax would be ideal. 

But Waiheke residents Christine Arnold and Rose Callander were opposed to the tax.

'I think it should be a toll as I live on Waiheke and hardly use the town roads and already pay 34 cents a litre more than you guys,' Callander said.

The law is expected to be passed in June, ready for the fuel tax to be put in place in the Auckland region from July 1.