Motorists make shift to fuel-efficient cars

Northland motorists are shifting towards more fuel-efficient cars as high fuel costs bite hard into household budgets, a Whangarei car dealership says.

Petrol prices reached a record of $2.23 a litre last month, but have since dropped to a national average of $2.20, sparking calls for greater fuel efficiency.

Geoff Gibson of Northland Toyota told the Advocate an increasing number of people bought a car for its level of fuel economy.

"It's been something that's steadily built since mid-2008 [when petrol prices first reached the $2.20 a litre mark]."

Although many drivers still did not consider a car's fuel efficiency when making a purchase, it was a big priority for motorists looking at the long-term costs of running a vehicle.

Prime Minister John Key and the Automobile Association have urged Kiwi drivers to switch to fuel-efficient cars to help combat high petrol prices.

AA spokesman Mark Stockdale said motorists could save precious dollars on their fuel bill by driving more fuel-efficient cars.

He warned high petrol prices, spurred on by increases in tax and rising international oil costs, were here to stay - therefore drivers needed to smarten up.

"A small car with an engine of up to 1.5 litres consumes half as much fuel as a large car over 3.5 litres."

The most recent 4 per cent increase in petrol tax has seen motorists paying about 90 cents a litre in fuel excise and GST.

The Government signalled last week further hikes in petrol taxes to finance big roading projects - meaning even more pain at the pump for motorists.

However, Mr Stockdale said: "Historically, Kiwis have tended to buy the car that they need for going away on holiday.

"That's your large station wagon or SUV with a big engine that's really good on the open road when you're carrying lots of passengers and you've got a boot full of gear.

"But, then they use the same car to commute to and from work."

He said Kiwi drivers tended to change cars every four years or so.

Despite the high petrol prices, New Zealanders were relatively well-off compared with other developed countries, Mr Stockdale said.

AA figures showed New Zealand petrol was the sixth cheapest in the OECD.

New Zealand Federation of Family Budgeting Services president Margaret Elsworth agreed fuel-efficient cars would help save families money on fuel bills but said vehicle upgrades were a low priority for those families already struggling to make ends meet.