The New Zealand Government has today announced that the Auckland Regional Fuel Tax will be axed at the end of June 2024.
Transport Minister Simeon Brown confirmed the news which was announced by Prime Minister Christopher Luxon this morning, saying that the removal of the tax is part of the government’s ‘100 Day Plan’.
“Ending this tax is one way to reduce the price of fuel and ease some of the financial pressure facing households in our largest city,” says Brown.
The Regional Fuel Tax (RFT) has been in place since 1 July 2018 and has seen Aucklanders pay an extra 11.5 cents per litre for fuel compared to the rest of the country.
“Removing this extra tax of 11.5 cents per litre on petrol and diesel means the driver of a Toyota Hilux will save around $9.20 every time they fill up, while a Toyota Corolla driver will save around $5.75,” according to the Transport Minister.
Approximately $780 million in revenue has been raised from the RFT as of September 2023, with $341 million of it sitting unspent.
The proceeds were intended to fund transport projects across Auckland like the $830 million O Mahurangi-Penlink link road that connects State Highway 1 with the Whangaparāoa Peninsula north of the city centre. However, the new road is now being financed solely by the government.
Brown says that Auckland Transport instead used RFT revenue to build more cycle lanes, install redlight cameras, speed humps, and lower speed limits across the city.
“I have discussed the unspent funds with Auckland Mayor Wayne Brown and signalled our intention that they are to be spent on projects which are of mutual priority to the Government and Auckland Council,” added Brown.
“These projects include the Eastern Busway, City Rail Link electric trains and stabling, road corridor improvements, and some growth-related transport infrastructure.”
The Auckland Regional Fuel Tax will end on 30 June 2024.