Petrol tax up another 4c from today

Monday, 1 July 2019

Taxes account for more than half the price we pay at the pump. (Video first published in May 2019)

Petrol taxes and road user charges rise on Monday - the second of the Government's three planned increases in this term.

Petrol is up 3.5c a litre - around 4c when GST is included - and road user charges are up 5.5 per cent.

The rises were first announced by Transport Minister Phil Twyford in June 2018. At the time he said they were needed 'to fund the infrastructure for our cities and regions to thrive, and save lives'.

He said the increases would cost the average family $2.50 a week by 2020.

Taxes on petrol are up another 4c a litre from Monday.

* Fuel taxes are regressive devices that hurt the working poor

* Prime Minister Jacinda Ardern rules out more regional fuel taxes**

Prime Minister Jacinda Ardern questions petrol company's pricing tactics, while rejecting calls to lower fuel tax.

National finance spokesperson Paul Goldsmith said the Government was taking an extra $1.7 billion from New Zealanders over three years through fuel tax increases, road user charges, petrol excise and Auckland regional fuel tax.

'Auckland motorists are most under siege. They're being asked to pay a regional fuel tax on top of everything else,' Goldsmith said.

The first of the Government's fuel tax increases came into force on October 1, 2018, and the third is due on July 1, 2020.

The Auckland regional fuel tax of 10c per litre - 11.5c with GST - started a year ago. Last October Prime Minister Jacinda Ardern ruled out any new regional fuel taxes while she was prime minister.

Meanwhile, Radio New Zealand is reporting just 15.95km of a planned 198km of life-saving median barriers planned by 2021 were installed in 2018.

Associate Transport Minister Julie Anne Genter agreed the median barrier rollout so far was too slow, but said the NZ Transport Agency now had a faster process for approving road safety projects.

The Auckland Business Chamber has said that despite petrol tax rises, Auckland drivers were sitting in traffic congestion while no action happened on 'ready to go' projects.

'For 18 months Government has sat on Mill Road, Penlink, and East West projects and ignored the potential benefits of congestion charges and other remedies offering congestion relief,' Auckland Business Chamber head Michael Barnett said.

'The planning for light rail has been slow, while the congestion continues to get worse.'