Regional fuel tax for Aucklanders confirmed
11:56AM Tuesday Oct 07, 2008

Aucklanders are to face higher fuel prices after the Government agreed to allow Auckland Regional Council to impose a fuel levy to fund new projects.

The levy, on petrol and diesel within the Auckland region, will be phased in over three years, starting with 2 cents per litre from July 2009, 5 cents from July 2010 and 9.5 cents from July 2011 through to 2039.

The levy is expected to raise around $110 million a year once the full 9.5 cent levy is being collected.

Under legislation passed this year councils can impose levies up to 10 c a litre with Cabinet sign-off.

In May, as petrol prices soared, Prime Minister Helen Clark indicated councils would not get the approval.

Transport Minister Annette King said today that the levy funds would be used towards several projects with public transport able to use more levy money than others.

Projects to benefit are ferry terminal improvements, development of an integrated public transport ticketing system, and construction of a new road linking the Whangaparaoa Peninsula to State Highway 1 at Redvale (Penlink).

More here.