Extra petrol tax tied to inflation

Parliament last night passed legislation allowing the Government to increase the price of petrol so it can raise about $207 million a year for roading.

The petrol duty can be increased by 5c a litre (excluding GST) and it will be linked to inflation.

Customs Minister Rick Barker, who is in charge of the Customs and Excise (Motor Spirits) Amendment Bill, said all the money raised would be spent on roading.

The bill does not set a date for the increase. Instead, it allows it to be introduced on or after April 1.