Fuel tax to fund crucial transport projects

Jan Tinetti.

The Commerce Commission is being asked to investigate the fuel market as the Government says New Zealand has higher fuel prices compared to other OECD countries.

“Most of the cost of fuel is outside the Government’s control – driven by international prices and importer costs,” says Tauranga-based Labour list MP Jan Tinetti.

“However, we want to make sure consumers are getting a fair deal at the pump.”

She says petrol prices vary significantly across regions in New Zealand.

“Kiwis are paying significantly more for fuel in Wellington than Auckland, despite the regional fuel tax in Auckland.”

Jan says the recent added fuel excise, which came into effect on Monday, will help fund “crucial transport infrastructure projects”.

“This is the key way we are able to upgrade our roads. We are investing in safety upgrades to our state highway network to save lives. “

Paul Goldsmith.

In a statement released on Sunday, National’s finance spokesperson Paul Goldsmith said the Government has legislated for three taxes since it came into power.

“Over three years this Government is taking an extra $1.7 billion from New Zealanders through its fuel tax increases, road user charges, petrol excise and Auckland regional fuel tax,” says Paul.

Jan says decisions on fuel excise duty happen every year and every Government does it.

“It’s not a new tax.

“This increase was also already announced well in advance, this is just the legislation to give it effect.

“Our significant investments in public transport and rail will benefit motorists, by reducing congestion and getting big trucks off the road,” says Jan.

Jan says the previous National government increased the Government’s revenue take from petrol by 24 cents a litre.

This included 17 cents more petrol excise. The rest of the extra tax on petrol came from National’s increase to GST.

She says National increased fuel taxes six times while they were in government.

National raised petrol excise six times and increased it by 17 cents. This raised a total of $4.9 billion while they were in government (not inflation adjusted or including GST).

“Both National and Labour use excise increases for transport investment. Excise increases have been made every few years by government. They’ve been around since 1927.

Fuel excise duty increased 40 per cent under the last Government.

“Excise/RUC allows us to improve our roading and transport infrastructure, like rail to the airport and safety improvements, which is sorely needed after years of neglect under the former government.”

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Posted on 02-07-2019 14:45 | By Feruno

So the nats did it, we can do it ?Politicians need to have their $Massive incomes slashed to what a pensioner or a factory worker gets, and lose the fancy, luxury, chauffeur driven limos, and PAY for the stuff we, the People, have to pay. THIS is why Labor and National must be voted out of their lives of luxury, and lose their $Massive pensions so they can come down to earth and find out how much 4C/liter hurts. Also get rid of greens and NZ first if our beloved Country is to survive


Posted on 02-07-2019 13:16 | By Val.M

I remember the public making such an outcry when they were going to increase prices for the same reason that Jacinda said there would be no increase on her watch!. Why can’t they be trusted?! What can we believe!!


Posted on 02-07-2019 12:37 | By Merlin

Pot calling the kettle black.Both Governments have increased the petrol exercise so I suppose it was alright when your government did it Mr Goldsmith.

Please make public transport better

Posted on 02-07-2019 12:23 | By JohnHeb

We need much better public transport to alleviate the congestion on our roads, and to address the growing issue of climate change. Why not double the excise tax and make public transport in places like Tauranga and Auckland free.


Posted on 02-07-2019 11:10 | By dumbkof2

if all the money that the govt collects from petrol, road taxes etc was spent on the roads we would have the best roads in the world. should be used on nothing else but roads.

Spin spin spin

Posted on 02-07-2019 09:22 | By CC8

Not much of that actually makes sense, except that Left is right , and right is wrong. If Jan Tinetti is actually thinking about what she is saying, when is she going to lower the GST back to where it was before? How about if the government actually just applied the taxes collected from motorists to the roads , then there would be no need for excise increases. As for the inane statement that international prices control the price of fuel, please tell why NZ has one of the highest prices? Oh I see the rest of the world has to pay based on what we pay here, because the gutless government cannot keep the oil companies reigned in ???..Bull....

Do something this time

Posted on 02-07-2019 09:09 | By Chookymac

How many times have we heard the Govt is going to look into Fuel Companies pricing.It is all B-Shite they wont do anything.Its all Talk and no do