Is Auckland’s regional fuel tax drifting into other parts of the country?
The Ministry of Transport isn’t sure yet, but is due to release a report on the matter in October, Stuff reports.
“It is extremely difficult to isolate different influences on fuel pricing,” MoT adviser Brent Lewers wrote in a memo to transport minister Phil Twyford.
Work published in the memo by data scientist Peter Ellis showed prices in Wellington and the South Island rising more sharply than other non-Auckland markets since the tax was introduced on July 1.
“His view is that these price trends could reflect tax spreading,” Lewers says.
“An alternative argument is that these price trends could reflect fuel companies continuing to exploit the ability to set higher prices in parts of the country in which Gull does not operate.”
Lewers says Z Energy and BP have stated they’re not participating in price spreading.
