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Fuel tax to bite consumers in back pocket

Author
Newstalk ZB,
Publish Date
Wed, 27 Jun 2018, 7:14AM
(Photo / NZ Herald)

Fuel tax to bite consumers in back pocket

Author
Newstalk ZB,
Publish Date
Wed, 27 Jun 2018, 7:14AM

Keep an eye on your food prices, as Auckland's fuel tax comes in this weekend.

The 11.5 cent increase will be applied on Sunday, with the proceeds going to fund transport projects around the region.

Infometrics economist Brad Olsen told Kate Hawkesby we've seen retail and grocery prices go up in response to petrol increases in the past.

"Consumers themselves are about to see this bite them in the back pocket - not only at the pump but in everything else they buy that has to be transported around the country by trucks."

Olsen said it will be difficult to know exactly what fuel companies are doing with prices.

"While we'll see an 11.5 cent increase at the pumps in Auckland immediately, we won't see anything after that. So if the price of petrol goes up four cents a litre in three weeks time we're not gonna know if that's because the petrol companies are able to factor that into their system."

LISTEN ABOVE AS BRAD OLSEN SPEAKS WITH KATE HAWKESBY

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