Petrol prices increase by 0.8 cents due to ACC levy

Motorists will have to cough up an extra 0.8 cents on every litre of petrol from today with the ACC levy increasing.

The increase, signalled by the Government in December, adds 0.7 cents a litre to the 5.08 cents ACC (Accident Compensation Corporation) levy already imposed, with GST to be added on top, making it about 0.8 cents.

Non-petrol vehicles will have to pay increased licence fees of between $3 and $12 a year.

Caltex put its price up 0.8 cents a litre to 132.7 cents a litre for 91 octane petrol as of midnight, spokesman John Kerr said. The higher octane 98 now costs 138.7 cents.

BP spokesman Jonathan Hill said the increase would go on to the pump price of petrol sometime today.

Shell spokeswoman Jackie Maitland said it was monitoring its prices but had not made any increase.

Mobil has put its prices up to 132.9 for 91 and 137.9 for 98.

Road Transport Forum chief executive Tony Friedlander said today on the face of it, the increase in the ACC levy was not enough to make much of a difference to the costs of freight operators.

But he said the overall costs of operators, including fuel, labour and insurance were rising.

"To have this increase in ACC at the same time is yet another pressure on freight rates which will end up being paid for by the general public.

"It's not a big one but it's yet another cost increase we could do without."

Mr Friedlander said the generally high and increasing fuel prices were more of a worry.

"It hurts in the short run because there is a lag between when those prices rise and when our businesses can pass them on."

He said the businesses could not absorb the rises forever and when they were passed on, it would hurt the economy.

"As freight rates rise, it suppresses economic growth.

"The major impact is in provincial New Zealand because that's more heavily dependent on freight costs than a metropolitan centre."

Automobile Association spokesman George Fairbairn told NZPA that AA accepted the increased AA levies were needed to pay for increasing costs.

"It's spreading the costs more to those people who drive greater distances -- they will pay slightly more through the amount of fuel they use."

He said the costs of medical care were higher so the ACC costs had to increase.

"I think we all accept the ACC system is there to provide certainly should we have an accident."

Diesel users would probably feel the effect more, having to pay a higher upfront ACC levy in their licence fee of $70 to $80 dollars a year.

- NZPA