Pain at petrol pumps

Petrol prices are hitting record highs in many parts of New Zealand, but Canterbury motorists have been saved another blow to their pockets after the regional council rejected plans to push for an Auckland-like fuel tax.

Most stations across Christchurch are now charging more than $2.35 per litre, while those living in some more remote parts of the South Island have to pay more than $2.50.

Another 3 cents a litre increase this week put the price of regular petrol at stations using the so-called ‘‘national price’’ up to $2.359, less than a fortnight after the price crossed $2.30 for the first time.

The national price is used in main centres where there is no regional discounting, however motorists in the upper North Island tend to pay less, because of discounting.

Environment Canterbury (ECan) yesterday voted against a proposal to introduce a tax of 10c a litre. Papers discussed at yesterday’s regional transport committee suggested the tax could have collected up to $100 million a year to fund major transport projects in the region.

However, ECan chairman

Steve Lowndes said the committee ‘‘resolved that we are not entering the regional fuel tax debate’’. The discussion followed a similar push from the Christchurch City Council earlier this year as it sought to widen the Government’s new fuel tax laws to allow city and district councils to introduce the tax, not just regional councils.

ECan deputy chairman Peter Scott said there were still several things to be worked out before any regional fuel tax could be implemented in Canterbury. ‘‘The Government has indicated there would be no new fuel taxes for at least another three years.’’

Auckland’s regional fuel tax was introduced on July 1 to fund a raft of transport projects. The city’s motorists now pay an extra 11.5c a litre (including GST) under the tax, but the gap between Auckland and New Zealand’s other major cities appears to be narrowing.

In some more remote locations, prices are considerably higher. In Wanaka in Central Otago, both BP and Caltex are charging $2.509.

Larry Green, co-founder of Gaspy, which collects prices at petrol stations across New Zealand, said the cost of petrol was on an ‘‘endless creep upwards towards $2.50’’ a litre.

Energy, which also supplies Caltex, blamed high global oil prices and a weaker Kiwi dollar.