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More pain at the pump: Petrol could rise extra 2c a litre

Author
NZ Herald,
Publish Date
Thu, 27 Sep 2018, 11:27AM
Motorists could face more petrol price rises.
Motorists could face more petrol price rises.

More pain at the pump: Petrol could rise extra 2c a litre

Author
NZ Herald,
Publish Date
Thu, 27 Sep 2018, 11:27AM

ACC is proposing an increase in the road user levy that will push up the price of petrol by nearly two cents a litre.

Motorists are already reeling at high fuel prices, with many fuel stations across the South Island this week charging above $2.40 a litre for 91 petrol and the pricey figure of $2.469 has also been seen at a station in the capital.

ACC, which is seeking feedback on its two-yearly levy setting process, said that since it last adjusted levies in 2016, the number of claims for injuries had grown by 6.4 per cent.

The move comes just three days before the introduction of a new nationwide petrol excise duty of 3.5 cents a litre.

ACC is recommending to Transport Minister Phil Twyford to increase the average motor vehicle levy for road users from $113.94 to $127.68 - a 12 per cent increase.

This includes a proposed increase of 1.9 cents per litre for petrol.

The decision whether or not the new petrol levy is adopted is up to Twyford.

"Since we last adjusted levies in 2016, the number of claims for injuries have grown by 6.4 per cent, with more people than ever needing our support," says Dame Paula Rebstock.

She said in times when the economy is doing well people tend to lead more active lives which exposes them to greater risk.

Rebstock also cites New Zealand's ageing population as a reason it is proposing a levy increase, as well as increasing medical costs.

Increased costs for care and support workers resulting from the pay equity settlement agreed by the Government is also a factor, she said.

As is the introduction of free doctor visits for under 14s and increases in weekly compensation claims.

A BP spokeswoman said ongoing pressure had forced the company to increase petrol prices by 2 cents per litre at all BP Connect sites nationwide this week.

A regional fuel tax was introduced in Auckland on July 1 and generated $13.2 million in its first month of operation – that was $700,000 more than initial estimates.

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