The 11.5c-a-litre fuel tax, which has cost Auckland motorists $150 million a year since its introduction in 2018, ended this morning.
“AA is pleased to see fuel prices have dropped by 11.5 cents per litre across Auckland in response to the removal of the regional fuel tax,” said AA senior policy advisor Terry Collins.
“We will continue to monitor prices to ensure they remain in line with fuel import costs and overheads to ensure all New Zealanders receive a fair deal at the pumps.”
At the time of publishing, price tracking app Gaspy stated average fuel prices for Unleaded 91 in New Zealand had dropped 13.26 cents in the past 28 days, compared with 12.85 cents for Unleaded 95 and 9.15 cents for Diesel.
The cheapest Unleaded 91 grade fuel in Auckland, according to Gaspy, was Costco Fuel Westgate at $2.397 per litre, followed by Gull SPEEDLANE Wiri at $2.417 per litre and NPD Self Serve Otara at $2.446 per litre.
The Costco fuel service centre at Westgate was busy ahead of the removal of the fuel tax subsidy. Photo / Dean Purcell
Meanwhile major fuel companies confirmed to the Herald they had updated their prices before the removal of the regional fuel tax came into effect.
A BP spokesperson said the Auckland regional fuel tax was passed onto its customers “in full” at the pump yesterday evening across BP Connect sites.
“There are a number of factors that influence prices. We continue to review BP Connect prices every day to ensure competitiveness in the market.
“There are also a number of independent BP operators all around the country who set their own prices and manage their own operations.”
A Z Energy spokesperson told the Herald it had updated prices by midnight last night to ensure the removal was “immediately passed on to our customers”.
“Z Energy (Z) is committed to ensuring our customers get a fair deal at the pump. We are no longer collecting the Auckland regional fuel tax on behalf of the Government and this has been reflected in our pricing at sites in the Auckland region.”
The regional fuel tax, in place since 2018, has been scrapped by the Government.
Mobil Oil NZ chair Wayne Ellary said Mobil had dropped its prices for all fuel grades by 12 cents per litre at 4pm on Sunday at service stations where the company sets the retail price.
Most motorists spoken to by the Herald while filling up their tanks today were on board with the regional fuel tax scrapping.
“I think to be able to buy a cheese scone... that will make a big difference,” one motorist said.
However, another motorist said the savings wouldn’t make much of a difference.
“Half the time I can’t even afford to put gas in [my car], so I’ll catch the bus or I’ll walk... Honestly $5 or $10 doesn’t make too much of a difference. If it was $20 [it would] but not really $5 or $10.”
Prime Minister Christopher Luxon and Transport Minister Simeon Brown talk to media at Z Pakuranga on the eve of the Auckland regional fuel tax axing. Photo / Alex Burton
Speaking to media on Sunday, Prime Minister Christopher Luxon lauded the end of the fuel tax to ease the cost of living for hard-working New Zealanders.
“For a hard-working tradie driving a truck like a Toyota Hilux, that means a saving of around $9 every time they fill up. For seniors driving a Toyota hatchback, that means a saving of around $6,” Luxon said.
In place of the fuel tax, the Government plans to introduce time-of-use charging to bill motorists at different times on sections of motorways during the morning and afternoon peak times. Councils will be able to do the same on arterial roads.
Speaking alongside Luxon at the Z Pakuranga petrol station in his electorate yesterday, Transport Minister Simeon Brown said policy decisions have not been made about when time-of-use charging will be introduced as part of National’s coalition agreement with Act.
Benjamin Plummer is an Auckland-based reporter who covers breaking news. He has worked for the Herald since 2022.
