Auckland motorists will pay an extra 2 cents a litre at the petrol pump from July to help pay for regional transport projects.
The regional fuel tax approved this week will go towards ferry terminals, integrated public transport ticketing, and electrification of the rail network.
The levy will rise to 5 cents a litre from July 2010 and 9.5 cents from July 2011. It’s expected to raise $110 million a year once the full rate is being collected.
New legislation passed this year allows fuel taxes to be collected by regional authorities in order to fasttrack key transport projects.
Approval for Auckland Regional Council’s proposal was announced by the government on Tuesday.