Today the price of fuel goes up once again due to an increase in fuel taxes to pay for the governments Roads of National Significance programme. It’s part of an annual hike of 3 cents per litre per year over a three year period that was announced in December 2012. Here’s the story from 2012 as a reminder:
The Government will increase petrol tax by three cents a litre each July 1 for the next three years.
Transport Minister Gerry Brownlee said road user charges would also be increased by an equivalent amount.
He said the increases were required to deliver the “Roads of National Significance” programme and other roading projects to the timeline set out in the Government’s land transport funding policy.
“Excise increases in recent years have helped maintain the real value of the Land Transport Fund. These latest increases will also achieve that, and allow for continuing investment in the Government’s state highway building programme and other transport projects,” Brownlee said.
The increase sees prices once again nudge closer to their all-time record high of 226.9 cents which was set in July last year.
The change in both the fuel taxes and importer margin appear to have been having quite a bit of impact over the last six or so years. The importer margin has almost doubled over that time to around 30 cents per litre while the amount paid on fuel taxes has increased by over 10 cents per litre.
Yet this increase isn’t enough to pay for all of the governments roading binge. The Auckland package of motorway projects is being funded in part by a $375 million interest free loan while the $212 million rural roads package announced on the weekend is being paid for by asset sales.
By contrast next week prices are going down for public transport in Auckland if you use HOP. Perhaps something AT should highlight strongly.