Auto LPG gets another tax break

Auto LPG gets another tax break

The Government has again favoured automotive LPG by excluding it from recent increases to petrol excise tax and road user charges.

This is the fourth time in five years government has exempted auto LPG from transport fuel tax increases, said LPG Association executive director, Peter Gilbert.

“This reflects ongoing government support for auto LPG, which has a lower greenhouse gas impact than petrol, and which emits none of the carcinogenic particulates found in diesel exhausts.”

The recent tax rises, which are inflation-linked, increase the price of a litre of petrol by 0.69 cents including GST. Diesel road user charges have risen by 64 cents including GST per 1,000kms.

Automotive LPG remains around $0.916 a litre on average for casual users and $0.852 a litre on average for fuel card holders.

While government must be applauded for supporting cleaner-burning auto LPG, Peter Gilbert said most New Zealanders do not realize LPG has this level of official government backing.

“That’s very unfortunate and it probably negates the effectiveness of this initiative.”

Mr Gilbert urged government to actively publicise its support for auto LPG.

He said this will be a key factor in encouraging more high mileage motorists to switch to LPG, which will help to cut transport sector emissions and assist New Zealand to meet its Kyoto obligations.

“The country needs to get best value from this government support.”

ENDS

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