Petrol prices in New Zealand have surpassed $3 per litre, following the end of the Government's fuel tax subsidy that aimed to alleviate the cost of
Petrol prices in New Zealand have surpassed $3 per litre, following the end of the Government’s fuel tax subsidy that aimed to alleviate the cost of living concerns. The recent increase in petrol prices is having a significant impact on some individuals, including an Uber driver who mentioned that after expenses, he is left with around $200 per week. Over the last six weeks, pump prices have risen by approximately 55 cents per litre, attributed to factors such as an increase in the international price of crude oil. Experts predict further increases in crude oil prices, potentially affecting household budgets and prompting some individuals to consider their financial options, including potential relocation.
New Government Proposal: Petrol Taxes Set to Increase by 12 Cents per Litre
Petrol prices are set to surge as the government proposes a 12-cent increase per litre over the next three years. This new proposal is part of a “record” boost in transport funding that will see a total investment of $20.8 billion over the next three years. The increase in funding aims to address the demand for road repairs, new road construction, and improved public transport options across New Zealand. The government plans to partially fund this investment by raising petrol taxes and road user charges. The first year will see an initial two-cent increase, followed by an additional two cents after six months, and then four cents annually in 2025 and 2026, resulting in a total increase of 12 cents over three years. These increases are consistent with historical trends of semi-regular increases prior to 2020. The new policy is open for consultation until September 15th.