Wednesday, July 6, 2022

Transport industry call for fuel excise cuts to stay

New Zealand’s road transport industry has today called on the Government to extend the reduction in fuel excise and road user charges (RUC) indefinitely.

“Extending the reduction is vital in order not to increase the pressure on hardworking families and struggling businesses,” says Ia Ara Aotearoa Transporting New Zealand Chief Executive, Nick Leggett.

“Many kiwis are only just keeping their heads above water at the moment and we need the Government to do what it can to help them through.”

The current fuel excise reduction scheme is set to come to an end in the coming months.

Mr Leggett said 93% of New Zealand’s freight travels on the back of a truck and the road transport sector continually strived to drive efficiencies in their businesses.

“The industry, which helped carry New Zealand through COVID-19, is coming under intense cost pressures, meaning that any increase in freight transport costs will have to be passed on through the supply chain to the consumer at the supermarket check-out.”

He said the 36% discount in RUC announced and then extended earlier in the year was welcome.

“However, fuel prices are even higher now and despite rosy talk from the Government, these higher prices are likely to continue for some time.

“The reality is that half the Government’s $27 per week cost of living payment will be wiped out immediately if people are having to pay an additional 25 cents per litre on fuel.”

“The Government has a simple decision to make here – return fuel taxes to their original excessive levels, or commit to providing Kiwis longer-term relief from this cost-of-living crisis.”

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