Triple factors push petrol price
AUCKLAND: Inflated fuel prices throughout New Zealand are starting to hit home as taxes increase, the kiwi weakens and crude oil costs jump.
The transport industry is warning that rising fuel bills will shortly be felt across the economy as costs are passed on to consumers.
Prime Minister Jacinda Ardern yesterday said the Government would not bail out the nation by removing petrol taxes.
‘‘We have seen an increase [in fuel prices] over the past year of almost 39c and in that period of time excise has been 6.8c of that,’’ she said.
‘‘If we remove the 3.5c tomorrow, I cannot guarantee that would be passed on to consumers.’’
On Monday Ms Ardern declared consumers were being ‘‘fleeced’’ by fuel companies but has since refused to budge on easing the excise tax.
In an attempt to resolve the issues around fuel prices, the Government has prioritised the passing of the Commerce
Amendment Bill.
This Bill would amend the Commerce Act to enable the commission to undertake market studies.
The major fuel companies deny overcharging consumers, pointing out the rising cost of the product and the weakening New Zealand dollar.
New Zealand could be in for an economic shock as higher fuel charges push up the price of nearly all retail goods.
The price of fuel is putting the pressure on New Zealand’s trucking industry as companies attempt to manage costs, industry spokesmen said.
Independent economist Cameron Bagrie said rising petrol prices were ‘‘siphoning money out of consumers’ wallets and adding to distribution and transport costs’’.
‘‘It’s a losing trifecta at the pump, with a combination of rising international oil prices, a lower dollar and lifts in fuel taxes,’’ Mr Bagrie said.
Employment and Manufacturers Association chief executive Kim Campbell said although the Government could not control the price of oil and the kiwi, it did control how much tax it charged on petrol.
He said high petrol prices were eroding the benefits pro vided to lowincome New Zealanders through the Families Package.
‘‘[Ms Ardern] needs to have some flexibility. The one thing the Government can do is adjust the tax on petrol.’’
In Northland, the cost of fuel was forcing some midwives to turn down pregnant women living in rural areas.
College of Midwives Northland chairwoman Nicole Pihema told Newstalk ZB, midwives were not taking women in certain areas because they were unable to afford the fuel. She said she travelled more than 2000km in the past week, filling her car three times. — NZME