25/07/2013 - Industry insights
As you’ll know the government planned to increase the excise tax on petrol, and we’ve just had the first 3 cent per litre increase implemented. While diesel is not affected by the tax increase, Road User Charges have increased by 10%.
Fuel prices consist of several components, with tax being one of the largest slices of pie and equalling approximately 29% of the total cost! For more details on the price build up check out AA's website
Fuel is not too different from every other commodity product. Just like milk, bread and fresh vegetables the prices have increased significantly over the last five years.
We understand that the reason behind the tax increase is to help with road works which are constantly needed to improve New Zealand roads. These are the roads that Kiwis use getting from home, to work and summer holidays.
Under the roads of national significance programme, the roading projects currently in plan or already taking place that this money is going towards are:
• Puhoi to Wellsford - SH1
• Completing the Western Ring Route - SH16 and SH20
• Victoria Park Tunnel, Auckland - SH1
• Waikato Expressway - SH1
• Tauranga Eastern Link - SH2
• Wellington Northern Corridor - SH1
• Christchurch Motorways
For more information on the roads of national significance check out the NZ Transport Agency website.
So while a price increase is never going to be a popular decision, this information shows that it was a deliberate and thought out one that allows us to continue to do the things we love, like going on classic Kiwi Summer road trips.
We get that this close to Christmas not everybody will be up for this, but if you’re interested in understanding the latest research on what the future... read more