Some diesel drivers might be taking more than their fair share of road user charges relief following the Government’s efforts to ease price pressures at the pump.
Numbers released to Newsroom by the transport minister show more than 70% of RUC purchases through the scheme have been identified as likely excessive by Waka Kotahi.
So far, 21 large RUC distance licence holders have reversed their purchase after being contacted by Waka Kotahi.
The Government passed legislation in April to help RUC users receive their share of recent fuel relief measures.
The passing of the Road User Charges (Temporary RUC Reduction Scheme) Amendment Bill delivers a 36% reduction across all legislated rates and was recently extended until January.
The reduction is part of the Government’s transport support package to help New Zealanders through the global energy crisis caused by the war in Ukraine.
It follows the 25 cent a litre cut to fuel excise duty (FED) as well as a 50% reduction in public transport fares.
Diesel users who had already purchased RUCs could also apply for a credit through an ‘overlap licence’.
This licence begins on the current odometer or hubodometer reading at the time of the purchase. The unused distance on the existing RUC licence can then be automatically credited to offset the new licence costs, and that can be done at the new reduced rate.
At the time the legislation was passed, transport minister Michael Wood said protections were in place to ensure the integrity of the system.
To discourage bulk purchasing, those purchasing road user charges during the period of the reduction are required to complete an online declaration form stating they are only purchasing charges that they require for that period.
Waka Kotahi has since being undertaking spot checks of large or suspicious purchases and, where appropriate, is taking enforcement action.
Enforcement action could include the charging of unused road user charges at the non-reduced rate.
Letters have been sent 757 diesel users thought to have exceeded the number of RUC units they’re entitled to, Newsroom reports.
Transport minister Michael Wood told Newsroom that Waka Kotahi is closely monitoring large purchases.
“While there will always be those who try to take advantage of the system, I am confident that this is a relatively small number of potentially excessive purchases, when compared with the overall number of RUC purchases,” he said.
Extending the fuel excise and RUC reductions until the end of January is estimated to cost $589 million.
It’s money that usually goes directly to the National Land Transport Fund to pay for building and maintaining roads, and funding public transport, walking and cycling initiatives. The cost to extend half price public transport is an estimated $63.1 million.
Treasury estimates combined impacts of the policy will reduce headline inflation by 0.5 percentage points in the June 2022 quarter.
The cut to fuel excise reduces the cost of filling up a 40 litre tank of petrol by over $11, and for a 60 litre tank, over $17 and half price public transport sees an average person who pays two $5 fares a day save $25 a week.
