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Govt petrol taxes increasing the pain on families


Amy Adams - Finance

5 October 2018

Every New Zealander filling up this week will be shocked at how much pump prices are biting into their pay packet and asking why the Government would be hiking fuel taxes now, National’s Finance spokesperson Amy Adams says.

“Soaring fuel prices eat into the family budget and drive up costs for business. It beggars belief that the Government would impose another tax on petrol already at a record high but it did and the price quickly reached a new all-time high this week.

“If this Government wanted to help Kiwis get ahead it would cancel the latest fuel tax hike and stop those that are planned. The Government should be helping rein in the cost of living but instead it is overseeing hikes to everything from fuel prices to rents and ACC levies.

“There are clear signs petrol prices are likely to keep soaring with the New Zealand dollar at its lowest level in almost three years, given our dependence on imported fuel priced in US dollars. Some commentators are predicting prices could reach $2.70 a litre in the near term.

“This is a Government set on beating its own records when it comes to higher fuel prices. At $2.49 a litre of petrol, the national fuel price has surged 42 cents since the coalition took over last year.

“This will cost New Zealanders hundreds of dollars more each year just to travel around their communities, drop their kids off at school, and go to the supermarket or travel to work.

“The Government is planning further fuel tax hikes of 4 cents a litre in 2019 and 2020 and in 2021, regional fuel taxes will be available across the country. We know there are 14 councils already exploring regional fuel taxes in their regions.

“Tax and spend isn’t a strategy for economic growth. National would dump the regional fuel tax, slash back wasteful spending and drive down the cost of living for Kiwi families, ensuring they get to keep more of what they earn.”

ends

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