Government proposes no increases to petrol tax or road user charges

There are to be no increases to petrol tax or road user charges for the next three years in the Government’s draft policy statement for transport in 2021. 


It outlines four priorities for New Zealand’s land transport as safety, better transport options, improving freight connections and climate change and instructs NZ Transport Agency how to use £4.5 billion a year. The draft policy statement covers 2021/22 to 2030/31 and confirms the Government intention to spend £54 billion over the decade.  Transport Minister Phil Twyford said there were no proposals to raise petrol excise and that “safety remains our Government’s top priority and we’re planning to invest £10 billion in our strategy to reduce the number of deaths and serious injuries on the road by 40 per cent”.

“In the first three years alone, Road to Zero will invest nearly £3 billion in safety infrastructure like median barriers, safety campaigns and road policing. “We’re taking climate change seriously through unprecedented investments in public transport and walking and cycling improvements.” A regional fuel tax in Auckland has been in place since mid-2018.

National committed to repealing Auckland’s regional fuel tax and proposed to not increase fuel taxes in its first term.

The full policy statement can be accessed here.  

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