Book Reviews | Gordon Campbell | News Flashes | Scoop Features | Scoop Video | Strange & Bizarre | Search

 


Auckland Transport Blog: 3 cents a litre, y’all

3 cents a litre, y’all

by John Polkinghorne
July 1st, 2013

http://transportblog.co.nz/2013/07/01/3-cents-a-litre-yall/

3 cents doesn’t get you much these days. But when you’re talking 3 cents a litre, times 2.5 million cars, using 1,000 litres a year, it starts to add up. As of today, folks, the excise duty on petrol has been lifted by 3 cents a litre (from 50.5 cents to 53.5 cents), and that’s how much more you’ll be paying at the pump.

Where does the money go? Straight into the National Land Transport Fund. What’s the main reason for the increase? Current National Party policy: the “Roads of National Significance”. We’ve had plenty to say about those elsewhere on the blog, so I won’t discuss them here. National is planning to increase the excise by another three cents next year, and again the year after that.

I should point out that I’m all in favour of these increases, although I don’t necessarily agree with the way they’re being spent. That’ll have to wait for future posts.

I’ll just note that petrol taxation has had a funny ol’ history. These days it’s a more straightforward system than it used to be, and it’s essentially based on “user pays”, with most of the money going to the National Land Transport Fund – which helps to pay for road maintenance and construction, and of course a token amount for public transport. A bit goes to ACC to help cover the costs of accidents on the road. The graph below uses MED data to show how these taxes have changed over time. Note that GST isn’t included here, but of course we do pay that on petrol as well.


Click for big version.

The graph above excludes the effect of inflation, i.e. it’s showing the stats in “nominal” dollars. But of course a dollar went further in 1974 than it does today, so if you allow for inflation – converting everything to today’s dollars, or “real” dollars – you get a different looking graph:


Click for big version.

Taxes were highest in the mid-70s and mid-80s, but they’ve been increasing fairly steadily since the early 2000s, faster than general inflation. This seems set to continue, given the increases that have been pencilled in for the next two years.

Just one more reason why you can expect petrol prices to increase faster than other prices!

It’s also worth remembering that New Zealand has lower petrol prices than most of the OECD which is primarily a result of the level of tax charged. The MBIE have done some comparisons on this, with the latest one being up to the December Quarter of 2012:


Click for big version.

ENDS

© Scoop Media

 
 
 
 
 
Top Scoops Headlines

 

Howard Davis: Lest We Forget - Scoop As A Digital Archive

Scoop performs a sadly overlooked and tragically undernourished, but nevertheless extraordinarily vital function. Over the past 17 years, it has evolved into a unique digital archive conserving millions of items of truly national significance. More>>

ALSO:

Gordon Campbell: On The Latest Allegations Against Helen Clark

According to former PM and UNDP leader current Helen Clark, the allegations leveled at her this week in a Foreign Policy magazine article by the prize-winning UN journalist Colum Lynch have been ‘totally fabricated’. Hmmm. That would be very, very surprising. More>>

Letter From The Editor: The State Of Scoop

Gordon Campbell: The PledgeMe campaign currently being run by the Scoop Foundation does provide a useful opportunity to update you on what gets done with your money. Further down the track, other documents will set out what we plan to do, resources permitting. For now, lets stick with the practical nuts and bolts. More>>

ALSO:

Gordon Campbell: On The Rise Of The Far Right (And Battle Bots)

In his victory speech at the Cannes film festival this week, the British film director Ken Loach [pictued] warned that the rise of far right parties in Europe was being fuelled by the economic policies of austerity, and manifested in a welfare bureaucracy that systematically denies assistance to those in most need. More>>

Julienne Molineaux: Stuff-Me - The Newspaper Gobble-Up

In New Zealand, concentration of newspaper ownership via mergers and acquisitions has a long pre-digital history. The trends of declining readership and fragmented audiences began before digital content, and mergers and acquisitions proceeded apace, enabled by weak legislative protections. More>>

ALSO:

Scoop Foundation Membership Drive:

The Scoop Foundation: The best chance to create an independent guardian for public interest journalism in NZ

The Scoop Foundation is seeking public support to safeguard the future of public interest journalism in New Zealand. To ensure public access to comprehensive, free, timely news is maintained during this dark hour for journalism. And to provide every voice in NZ the opportunity to be heard in the national debate. More>>
PLEDGE NOW: Journalism: A New Model - The 2016 Scoop Foundation Membership Drive

Scoop Foundation Timeline:

Get More From Scoop

 
 
 
 
 
 
 
Top Scoops
Search Scoop  
 
 
Powered by Vodafone
NZ independent news