Now is not the time to hike fuel taxes and charges

Fuel tax rises should be scrapped as inflation remains stubbornly high

The diesel road-user charge reduction scheme, which reduced rates by 36 per cent, is due to end with charges going up significantly tomorrow (1 February 2023).

The charge hike will mean a large increase in the cost of transport for diesel-powered vehicles, which is most of our heavy transport fleet. This will flow through to prices for consumers, manufacturers, and primary producers, fuelling already high levels of inflation.

Taxpayers’ Union Campaigns Manager, Callum Purves, said:

“New Prime Minister Chris Hipkins has said all the right things when it comes to getting back to bread-and-butter politics and focussing on the cost of living, but actions speak louder than words.

“Tomorrow’s diesel road-user charge hike will hit Kiwi families and businesses hard at a time when persistently high inflation is already hurting. With petrol excise hikes looming in the coming months, it’s still not too late to have a rethink and keep fuel taxes down.”