'Way too high for me already' - Proposed fuel tax increase unpopular with drivers, businesses and emergency services

April 4, 2018

The Government wants to pump more money into road safety and public transport with the fuel tax.

Drivers, businesses and emergency services are unhappy with a proposed increase to a national fuel tax that's part of the Government's transport plan.

It wants to pump more money into road safety and public transport and use the extra money raised to pay for it.

Charles Miller has a Driving Miss Daisy franchise in east Auckland. 

He does 1,000 trips a month, ferrying the elderly and disabled, "to the doctor, to the hair dresser, to the supermarket". 

The Government is looking at adding to the nationwide fuel tax by between nine and 12 cents a litre over the next three years.

"We will have to pass on some of the increase, but it's also unquestioned that we will have to absorb some ourselves," Mr Miller said. 

You increase the road taxes, you'll put the price up on all goods

—  Ken Shirley of the Road Transport Forum |

Ambulance service St John told 1 NEWS the increase will have a dramatic impact on it too. St John drives more than three million kilometres a year.

And the increase won't just effect petrol prices.

"All your supermarket goods, all whiteware - about 12 per cent of that price component is actually in the road transport factor. So you increase the road taxes, you'll put the price up on all goods," said Ken Shirley of the Road Transport Forum.

The fuel tax will add to the Government's pot of money.

It's promising that'll go on making roads safer throughout the country, and will also mean more money for rail and public transport. 

"We need to give families and commuters choices. Right now they don't have those. They are stuck in congestion," said Prime Minister Jacinda Ardern.

Auckland drivers are set to be slapped twice, with this new national fuel tax and the planned regional fuel tax from the Auckland Council.  

Transport Minister Phil Twyford says it's going to cost "less than the equivalent of a cup of coffee a week, and actually it's going to allow us to make some pretty amazing investments in the transport system".

National leader Simon Bridges says it isn't just a new tax, "it's a significant new tax".

So what do Auckland drivers think? 

"I think Auckland has to make a contribution. But the country does as well because if Auckland's successful, the country's successful as well," said one motorist.

Another said: "I think that's fair and reasonable, I think as long as those taxes go back on improving the infrastructure on the roads and public transport."

But another driver said: "I travel a hundred ks a day, so it's way too high for me already."

When National was in government it raised fuel taxes a number of times, but says it wasn't going this year. 

Now the Labour Government is set to make it happen. 

SHARE ME

More Stories