Letters: Government investigation welcome

A reader is pleased the Government is continuing its investigation into petrol prices throughout the country. Photo/file

I am pleased that the Government is continuing on with its investigation into the anomalies in the petrol prices throughout the country.

There are some major discrepancies with the different regions that can not be explained by the differences in transport costs.

My other complaint is that the oil companies do not show the 95 ron petrol prices on their large outside advertising signs but clearly display the 91 ron and diesel prices.

Are they ashamed of their 95 ron pricing?

By my calculation the difference between 91 ron and 95 ron should be the difference between 91 and 95 which is very roughly about 4 per cent, so therefore the difference between the 2 grades of petrol should be 4 per cent.

I am very certain that the pricing is much greater than this when you front up at the pump.

Many European cars and others need the 95 ron grade to run effectively, especially as a car running on 95 ron runs further than 91 ron for the same amount of petrol.

It is time that the petrol prices in New Zealand are transparent but I would have to support price control by the Government if the oil companies do not react favourably.

Michael Galloway
Omokoroa

GST hurting low-income families

Treasury and the Government are no doubt delighted that rising food prices increases their revenue from 15 per cent GST on every purchase made.

Sadly for low-income families, these prices and the GST will add to their hardships. A disproportionate part of low-income families' income is paid on tax on food purchases compared to the proportion of income paid by high-income families. Food is not an optional purchase. We all have to eat.

Australia, Canada, UK and others do not have GST on their groceries. Their more compassionate governments recognise that food is a necessity and is needed to keep everyone and especially children in good health so saving on health costs.

It is amazing that so many economic commentators continue with the myth that 15 per cent GST on groceries is a fair and simple tax. It is not when imposed on essential purchases such as food. It is grossly unjust. When will our policy makers follow the example of sensible governments and remove GST from groceries and ensure that all our children have enough to eat?

Rosemary Michie
Rotorua