Govt defends fuel tax amidst high prices

WELLINGTON: The Government has defended the current fuel tax, saying if Kiwi motorists can bite the bullet now the rewards will arrive in the future.

Transport Minister Phil Twyford said while he feels for New Zealanders, the Government is looking to developments in the future.

‘‘Like all New Zealanders, I don’t like to see us pay more at the pump than we should and we want to see a competitive market for petrol,’’ he said.

‘‘The fuel taxes [are] about the investment in infrastructure that will have a 50 or 100year lifespan.

‘‘We don’t really make those longterm infrastructure investment decisions based on the shortterm fluctuations of the petroleum market.’’

The Government announced an investigation into fuel prices in December last year, but it is on hold until the Commerce Amendment Bill goes through parliament.

The Bill would compel fuel companies, as well as some others, to provide selected data to the Government.

Minister of Energy and Resources Megan Woods said her hands were tied until the legislation passed.

‘‘I understand how frustrated people are but . . . until we get market study powers for the Commerce Commission, nothing more can be done.

‘‘Of course, it will be up to the Commerce Commission to decide how to use them but there’s been a lot of discussion about how the fuel industry will be a prime target for that,’’ Dr Woods said. — NZME/RNZ