More pain at the pump: Petrol could rise extra 2c a litre

Motorists could face more petrol price rises.

ACC is proposing an increase in the road user levy that will push up the price of petrol by nearly 2 cents a litre.

Motorists are already reeling at high fuel prices, with many fuel stations across the South Island this week charging above $2.40 a litre for 91 petrol and the pricey figure of $2.469 has also been seen at a station in the capital.

ACC, which is seeking feedback on its two-yearly levy setting process, said that since it last adjusted levies in 2016, the number of claims for injuries had grown by 6.4 per cent.

The move comes just three days before the introduction of a new nationwide petrol excise duty of 3.5 cents a litre.

ACC is recommending the Government increases the average motor vehicle levy for road users from $113.94 to $127.68 - a 12 per cent increase.

This includes a proposed increase of 1.9 cents per litre for petrol.

The decision whether or not the new petrol levy is adopted is up to the Government.

"Since we last adjusted levies in 2016, the number of claims for injuries have grown by 6.4 per cent, with more people than ever needing our support," said chairwoman Dame Paula Rebstock.

She says in times when the economy is doing well people tend to lead more active lives which exposes them to greater risk.

Rebstock also cites New Zealand's ageing population as a reason it is proposing a levy increase, as well as increasing medical costs.

Increased costs for care and support workers resulting from the pay equity settlement agreed by the Government is also a factor, she said, as are the introduction of free doctor visits for under-14s and increases in weekly compensation claims.

A BP spokeswoman said ongoing pressure had forced the company to increase petrol prices by 2 cents per litre at all BP Connect sites nationwide this week.

A regional fuel tax was introduced in Auckland on July 1 and generated $13.2 million in its first month of operation – $700,000 more than initial estimates.

"Despite the cost pressures, our investment in injury prevention and ongoing changes to the way we work are having a positive impact," Rebstock said.

"Over the past two years we have also achieved higher investment returns than forecast."

This helped ACC to manage increasing costs with the exception of the motor vehicle account which was slightly higher than anticipated.

The proposed petrol increase is a result of an increase in injuries on roads and the costs associated with them, said ACC chief customer officer Emma Powell.

"This is where we have landed in terms of proposed rates, taking into account a whole range of factors, such as more people needing weekly consultation, more injuries on the road and the cost of that care."

She said she wanted to hear from New Zealanders about how they respond to those rates but ultimately it would be the Government's decision to weigh up those factors in its decision.

ACC will be consulting on the proposed levy changes for the next four weeks.