The Government will increase petrol tax by 3.5c a litre on October 1 and by the same amount again next year and in 2020.
It says the increase in petrol excise is consistent with regular increases under the previous government.
The October increase will cost the average household 83 cents a week, and the lowest income families will pay an extra 40 cents a week on average.
Mr Twyford says the 3.5c per litre increase per year for three years will help reduce congestion and restore funding to neglected cities.
Subsequent 3.5 cent increases in 2019 and 2020 will bring the average cost to $2.50 a week for the average family and $1.24 a week for the lowest income families.
Transport Minister Phil Twyford says this funding will allow $5 billion more investment in the next decade.
"The alternative is gridlock in our cities, lost productivity in the regions, and more deaths on our roads," Mr Twyford said.
"This move has been carefully designed to minimise the impact on families while unlocking the investment we urgently need," he said.
Phil Twyford says the money will be used to unclog roads.
Mr Twyford says National's Simon Bridges left a massive hole in the transport budget.
"The new Government was told an 8.2c excise increase was needed just to pay for the hole he had left in the books. If he wouldn't increase transport funding, Simon Bridges needs to say what projects he would cut," the Minister said.
The petrol tax increase revealed today is separate from the Auckland regional fuel tax of 11.5 cents per litre to be introduced from July 1.
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