Fuel tax ends motorists' good run
4:00AM Wednesday Sep 30, 2009
By Mathew Dearnaley

Fuel taxes are rising tomorrow, putting the brakes on a good run for motorists who have enjoyed petrol price cuts of 8c a litre since last week.

A 3c excise rise on petrol will mean a tax take by the Government of 3.375c after GST is added, and drivers of diesel vehicles face a similar average increase in road user charges, depending on vehicle weight.

Although oil industry minnow Gull has vowed not to raise its pump prices tomorrow, general manager Dave Bodger could not say last night how long it could hold the line, beyond noting it would have to pay the Government the extra 3.375c in the meantime.

Automobile Association spokesman Mike Noon was philosophical about the increases, saying that although nobody liked paying more taxes, they had been well-signalled and were at least being fully applied to roads and other transport needs.

That compared with the diversion to the Crown account, before a law change last year, of 18c of every 42.524c in excise duty collected on each litre of petrol.

More here.