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Petrol prices are about to rise yet again, as the Government confirms the fuel excise tax will be reintroduced in January 2023.
In March this year, the Government slashed fuel excise duties and road user charges by 25c a litre each for an initial three-month trial period. In July, Finance Minister Grant Robertson extended the scheme until the end of January.
The announcement came following high inflation and petrol prices rising above $3 per litre, which was largely driven by the war in Ukraine. At the time Prime Minister Jacinda Ardern described the situation as a “global energy crisis” following Russia’s invasion of Ukraine.
The tax cut was expected to relieve pressure at the pump, saving Kiwis around $11 to $17 per full fuel tank.
While the tax cut remains in place, Transport Minister Michael Wood has confirmed that it will be reintroduced in January next year.
Wood spoke with Three’s AM, saying that Kiwis will still be able to access other forms of support if they’re struggling with the cost of living.
“Grant Robertson has confirmed this is the approach we will take, that’s long been the signal. It has been over $1 billion of support we have provided to help Kiwis with this particular challenge.”
“We’ve always said we wouldn’t be able to extend it forever and a day so that will come to a conclusion in January but there are other supports that will continue for New Zealanders facing these pressures,” says Wood.
Currently, the average cost of 91 petrol in New Zealand is around $2.50 per litre. But for Kiwis, especially those living in major cities such as Auckland, the average is more like $2.70 per litre. This means, when the tax is reintroduced, Kiwis will be back to paying almost $3 per litre for fuel.
With that in mind, it might be a good time to consider purchasing a more economical car. Check out our clean car comparison to find out whether a hybrid, plug-in hybrid (PHEV) or pure electric car (BEV) is right for you, or if you’re already in the market for a new EV, here’s our ultimate guide to every electric car you can buy in NZ.
Keyword: Government confirms fuel excise tax will be reintroduced in January