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Government fuel tax hikes pump $565m out of Kiwis


5 December 2019

The Government is squarely to blame for Kiwis being fleeced at the petrol pump, having milked half a billion dollars out of motorists in just two years through its fuel tax hikes, National’s Transport spokesperson Chris Bishop says.

“New Zealanders are being ripped off at the petrol pump and it’s the Government who is picking their pockets through all the fuel tax hikes it has introduced these past two years.

“The extra revenue it has collected from increased fuel excise, road user charges and the Auckland Regional Fuel Tax has already hit $565 million – that’s $319 per household.

“Prime Minister Jacinda Ardern is the Fleecer-in-Chief. Her Government’s tax grab will hit $1.7 billion once further tax hikes – already passed into law – take effect down the line.

“This stings because motorists are getting nothing in return. The Government cancelled a dozen major roading projects that were ready to go under National and hasn’t started any major new transport infrastructure since it took office.

“In Parliament yesterday, the Prime Minister listed the transport projects it had started, which amounted to a few road repairs, one new passing lane and a roundabout.

“Kiwis don’t need more reports from the Commerce Commission to tell them what they already know; that keeping the car running on their summer road trips this year is going to cost more than it should.

“We welcome suggestions to improve competition in the fuel market. But unlike petrol, talk is cheap and the Government is a big part of the reason why petrol prices are so high.

“If elected in 2020, National will repeal the Auckland Regional Fuel Tax and we won’t increase fuel taxes in our first term.”


Extra Tax Revenue Collected ($m)
2018/19 1/7/18 to 1/12/19* Total
Road User Charges 106 71 177
Fuel Excise Tax 84 92 176
Regional Fuel Tax 150 63 213
Total ($m) 340 225 565
Per household 319
*Based on expected tax revenue for 2019-20

ends

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