The Taxpayers’ Union has today launched a new public tool – the Fuel Clock – to provide real-time insight into the country’s fuel security, amid growing concerns about the risk of diesel shortages.

Taxpayers’ Union spokesperson Tory Relf says the tool was developed in response to increasing unease about the resilience of New Zealand’s fuel supply chain.

“If New Zealand runs short on diesel, the economy will be on its knees. This isn’t about petrol prices or even aviation fuel – diesel is what keeps the country moving. It powers the trucks that stock supermarkets, the tankers that collect milk, and the machinery that underpins our primary industries.”

"While the probability of a major disruption may be low, the consequences would be severe. Even a small risk of a diesel crisis is something policymakers should be taking extremely seriously. Frankly, it’s something our economic team is losing sleep over.”

The Fuel Clock aggregates official Government fuel stock data – released by MBIE twice a week but three days behind – with live international shipping data to provide a more accurate, up-to-date picture of supply levels.

“At the moment, official updates are already out of date by the time they’re published. With so much publicly available shipping data, there’s no excuse for flying blind.”

In addition to fuel stock and shipping data, FuelClock.nz incorporates Government bond signals and prediction market indicators to provide a continuous, independent assessment of New Zealand’s economic and fuel supply risk.

“This is about transparency. Kiwis deserve access to real-time information – not spin, not delays, and not filtered messaging from politicians.”

"While current indicators suggest the situation is stable, the tool is designed to act as an early warning system should conditions deteriorate. Right now, things don’t look too bad. But if that changes, New Zealanders will be able to see it in real time.”

This is the only tool we are aware of that combines fuel tracking with fiscal monitoring which, given the circumstances, are in strong correlation.

The Taxpayers’ Union is encouraging public feedback to improve the platform and expand its data sources.

The Fuel Clock is available at www.FuelClock.nz

Why has the Taxpayers’ Union built the Fuel Clock?

Responding to reports the Government is considering additional financial support for families during the fuel crisis, the Taxpayers’ Union says any new support for families must be fully funded through spending cuts elsewhere, not more borrowing.

Taxpayers’ Union spokesperson Tory Relf said:

“Families are under real pressure from rising fuel costs, but throwing borrowed money at the problem will only make the cost-of-living crisis worse. More deficit spending risks driving inflation higher and keeping interest rates elevated.”

“If ministers want to provide support during the fuel crisis, it must be fully funded by reprioritising the billions currently being wasted across the public sector.”

“New Zealand cannot afford another Grant Robertson-style ‘spend now, worry later’ response. Kiwis are still dealing with the consequences of that approach.”

“Government debt is already at $140,000 per household, according to the national Debt Clock. Helping families today shouldn’t mean saddling them with more debt tomorrow. The Government should be tightening its belt and reallocating spending, not reaching for the credit card again.”

The Taxpayers' Union is correcting David Seymour's reported comments that a temporary cut to fuel tax - as called for by the Taxpayers' Union - would necessarily widen the deficit and result in more borrowing.

"With the greatest respect to David, the Taxpayers' Union is not calling for unfunded tax relief," said Taxpayers' Union Executive Director Jordan Williams.

"What we called for was scrapping the successor to the wasteful 'Provincial Growth Fund' and for those funds to be redirected into the National Land Transport Fund. That would deliver temporary tax relief at the pump without it affecting the deficit, or reducing investment in transport infrastructure.”

“Currently, taxes and levies make up more than 44 percent of the price you pay at the pump. But the only true tax cut is to reduce spending. The Regional Infrastructure Fund has proven wasteful with grants for things such as $10 million to a Bay of Plenty Marae. It is precisely the sort of low priority spending that should be scrapped."

The New Zealand Taxpayers’ Union is calling on the Government to temporarily cut fuel taxes as global tensions in the Middle East drive oil prices higher and push petrol prices above $3 per litre in many parts of the country.

Taxpayers’ Union spokesman Jordan Williams says households should not be forced to shoulder the full cost of global instability.

“Petrol prices are surging past $3 a litre in many parts of the country. At a time when households are already struggling with the cost of living, the Government needs to wear some of the burden rather than lumping it all on motorists.”

“Kiwis can’t control wars overseas, but the Government controls how much tax we pay at the pump. When petrol hits three dollars a litre, it’s working families and small businesses that feel it first.”

Williams says a temporary reduction in fuel excise would provide immediate relief.

“Reducing fuel tax is a proven way to support households when global fuel prices spike. In 2022, Jacinda Ardern’s Government cut fuel excise by 25 cents per litre to ease the cost-of-living crisis caused by soaring oil prices following Russia’s invasion of Ukraine.”

“A similar three-month reduction today would cost roughly $350 million in foregone revenue to the National Land Transport Fund, the same order of magnitude as the 2022 policy.”

Williams says the relief could easily be funded by reprioritising wasteful spending.

“With billions of dollars being funnelled through schemes like the Regional Infrastructure Fund — which is fast looking like a Provincial Growth Fund 2.0 — the Government has plenty of room to fund temporary relief for motorists.”

“Redirecting wasteful spending into the National Land Transport Fund would allow the Government to provide fuel tax relief while still maintaining investment in transport infrastructure.”

“Global oil shocks shouldn’t become an excuse for the Government to collect windfall tax revenue. When fuel prices spike, taxpayers deserve relief.”

Responding to the Government’s decision to introduce Road User Charges (RUC) for Electric and Hybrid Vehicles, Taxpayers’ Union Campaigns Manager, Connor Molloy, said:

“The user-pays system for our roads has been eroded with more and more of the National Land Transport Fund (NLTF) being used for areas unrelated to roading while an entire class of road users has been excluded from paying anything at all.

“Applying RUC to EVs removes a senseless distortion that did not reduce transport emissions which are already governed under the capped Emissions Trading Scheme.

“The Government must now commit to redirecting all NLTF funding to road upgrades and maintenance and any surplus should be used to reduce the fuel excise and RUC rates.”

The Taxpayers’ Union is calling on the government to give boaties a break and bring fairness to how they are taxed by ending road-related taxes on marine fuel.

Taxpayers’ Union Campaigns Manager, Connor Molloy, said:

“Boaties enjoying their time out on the water this summer are being hit twice by the government’s punishing 48% fuel taxes. First when they fill up the ute, and again when they fill up the boat.

“When Winston Peters said he’d never seen a Waka on the road he was onto something. It is completely unfair that boaties should have to pay for the upkeep of roads that they don’t even drive on. He, and the government should commit to scrapping the tax on a beloved pastime of many Kiwis.

“Those using fuel for off-road commercial purposes such as fishing can already claim back their fuel tax, all we are asking is that a similar claims process be provided to recreational boaties too.”

Commenting on National’s fuel tax commitment, Taxpayers’ Union Head of Campaigns, Callum Purves, said:

“In the middle of a cost of living crisis, hiking fuel taxes – as Labour is still proposing – is morally wrong. Fuel taxes disproportionately hit rural and the poorest communities – such as shift workers – the hardest.

"Ruling out further hikes is the right thing to do. Unless fuel taxes are frozen, very soon tax will be half the cost at the pump again.

“The whole point of fuel taxes is to fund roads maintenance and investment, but the National Land Transport Fund is being used to fund all manner of projects such as public transport, cycleways and loss-making rail services. Wellington could easily increase road investment without hiking fuel taxes by reverting the Fund back to what is was designed for – road maintenance and upgrades.”

Responding to David Parker’s comments that hiking fuel taxes even further is not out of the question for Labour’s much-delayed transport budget, Taxpayers’ Union Campaigns Manager, Callum Purves, said:

“Fuel taxes hit poor and rural households the hardest, and we are just a few weeks since Labour last hiked fuel taxes by 29 cents per litre. As Kiwi families struggle to get by in a cost-of-living crisis caused by reckless Government overspending, David Parker’s comment that Labour won’t rule out yet another cash grab is simply tone-deaf.

“The National Land Transport Fund is used to subsidize loss-making railways, walkways and cycleways, as well as paying for swanky opening ceremonies where public servants can pat themselves on the back for overseeing vastly over-budget projects. This announcement just goes to show that this Government’s default action is taxing working Kiwis more, when it needs to be cutting out waste.”

The Taxpayers’ Union has slammed the Government’s decision to hike fuel taxes from July. The 25 cent reduction in petrol excise (29 cents with GST) and the equivalent reduction in diesel road user charges will be scrapped at the end of June.

Taxpayers’ Union Campaigns Manager, Callum Purves, said:

“Despite all the promises of focussing the cost of living, July’s fuel tax hikes contained in today’s budget will hit Kiwis already struggling with rising inflation. Outside the main cities, most people still rely on their cars to get about on a daily basis. This increase will particularly hit lower income families and New Zealanders living in rural areas – the very people struggling the most with the costs of living.

“If the Government stopped allowing the National Land Transport Fund to subsidize loss-making railway lines, walking and cycle ways, and even the expensive ‘Road to Zero’ advertising campaign, it could maintain fuel taxes at lower levels while still maintaining and investing in our roading network.” 

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.”