Kiwis will soon be in for a shock at the pump if the Government doesn’t extend its fuel relief measures.
That’s the warning from road freight body Transporting New Zealand which is continuing to advocate for an extension on petrol and road user charge price reductions which are due to end on January 31.
Once the relief measures end, the cost to fill a car will go up $10 to $15 overnight, the price of catching a bus or a train will double, and road user charges will increase 36% – at a time when inflation is projected to rise again, Transporting NZ says.
Chief executive Nick Leggett points out this will come at a time when inflation is projected to rise again with the Reserve Bank expecting inflation to increase to 7.5% early next year.
“It’s not fair to load extra costs on families and businesses at a time when everything they need on a daily basis is going up.
“This is a real and direct way in which the Government can ease cost of living pressure for every New Zealander. The impact will be felt at the pump, in the supermarket and on buses and trains,” Leggett says.
Transporting NZ has had economic advice on the impact of extending the subsidy and is convinced that it should continue until families and businesses are better able to cope with increased costs.
Not only would the decision to stop the rebate now load costs onto struggling businesses and households, it would also add to inflation, Leggett says.
“Treasury calculations show that when the transport package was introduced in April of this year, it contributed to a reduction to inflation of 0.5%, so that would work in reverse, too. We could end up with even higher inflation – at 8% next year.
“Make no mistake, reinstating these taxes on January 31 will add significantly to weekly costs for every New Zealand family, in multiple ways.
“Transporting New Zealand is writing to Finance Minister, Grant Robertson to seek an urgent decision on the continuation of the transport package, so New Zealanders know one way or another and can plan.”
