BP, under fire for hiking petrol prices in lower North Island, says it's all ready to pass on new Auckland fuel tax to motorists

April 30, 2018

The new National Party leader says the tax is not needed and will cost Auckland families $700 a year.

BP - already under fire for hiking petrol prices north of Wellington - has been quick to confirm it'll pass on the new regional fuel tax approved by Auckland Council this afternoon.

Energy and Resources Minister Megan Woods says leaked emails appearing to show BP managers purposefully hiking prices in Levin, Kapiti and Paraparaumu to spur cheaper rivals to follow suit are "concerning".

In response to a rival's significantly lower petrol price in Levin, rather than lower their price in nearby Otaki by up to 20 cents a litre, BP managers instead agreed to hike prices at all their service stations in the area, expecting their rivals to follow suit.

Ms Woods reacted, saying a recent MBIE report showed some Kiwis in different parts of the country did appear to be paying over the odds for their petrol, and she'll be meeting personally with BP to discuss her concerns.

A spokesperson for BP has now confirmed to 1 NEWS that the company has been working with the Ministry of Transport and NZTA "for a number of months" to ensure it's prepared to implement the Auckland regional fuel tax on 1 July.  

"The tax will be incorporated into the price paid by our customers within the Auckland region in the same way that other fuel-related consumer taxes are today," the spokesperson said.  

BP earlier today defended its pricing in the lower North Island.

"Petrol prices in New Zealand are highly competitive and we adjust our prices in response to local competition, particularly in instances where discounting has become unsustainable, which is what occurred in the lower North Island last year," BP said in a statement.

Meanwhile Z Energy has indicated it's also planning for the Auckland tax.

"Z's planning to date has been to make things as simple as possible for our customers when this tax comes into effect," a spokesperson told 1 NEWS. 

Z also says it doesn't anticipate more drive-off as a result of the tax being implemented at the pump.

Transport Minister Phil Twyford says today's decision by Auckland Council is "a kick in the guts for National Party leader Simon Bridges who this morning declared he would keep Auckland in the dark ages by scrapping the regional fuel tax".

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