Auckland Business Chamber boss says 'ineffective' fuel tax the 'tipping point' in sky-high prices

October 9, 2018

Auckland Business Chamber's chief executive has slammed the Government for fuel taxes, as Kiwis feel the pain of rising prices at the pump. 

Michael Barnett said in a statement today margins identified are less than most retailers would seek and have not changed.

"The tipping point for fuel consumers has been the blunt and ineffective fuel taxes imposed by local and central government," he said.

"The currency and additional Government taxes have created a price point consumers find unacceptable."

The National MP says the coalition are in a panic about fuel prices.

Mr Barnett added that major fuel companies are "welcoming" a proposed investigation from the Commerce Commission and that, "of the 1,500 service stations in New Zealand, over 1200 are mum and dad running their small businesses".

The statements come after both sides of Government argued the issue earlier today on TVNZ1's Breakfast.

The Prime Minister says the Government is now undertaking work to get a basis for their plans.

Judith Collins says the Government is in a panic about the fuel price crisis and has called for them to cut the regional fuel tax.

"If the Government wants to do something right now, it could cut that tax, say we're not going to have that regional fuel tax, 11.5 cents a litre in Auckland plus everything else that’s going on," she said.

However, Prime Minister Jacinda Ardern  says the Government is moving quickly to look into the root causes of high fuel prices.

"Enough is enough here - even with the Regional Fuel Tax in Auckland, you see higher pump prices in Wellington and we've got to ask questions around what is going on."

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