Incoming road user charges for plug-in hybrids reduced

The New Zealand Government has confirmed that it will lower the incoming road user charge (RUC) for plug-in hybrid vehicles (PHEVs).

An initial charge of $53 per 1000km was set to come into effect on April 1 this year, 30 per cent less than the full RUC. However, it will now be reduced to $38 per 1000km.

The change comes after the National Party mistakenly voted in favour of a 50 per cent discounted charge put forward by Labour in Parliament last week.

Transport Minister Simeon Brown announced today that the Government will go ahead with the lower charge.

“I asked the Select Committee to test the Government’s earlier decision to set the discount for PHEVs from the full RUC at 30 per cent. The Government has agreed this should go further given there are a range of PHEVs with a range of fuel efficiencies,” says Brown.

“The reduced RUC rate for PHEVs is a temporary measure to lessen distortions while we get to work on transitioning the entire vehicle fleet to the road user charges system and away from fuel excise.”

No changes are being made to the incoming RUC for fully electric vehicles though, with owners expected to front the full $76 per 1000km.

The introduction of RUC for low or no-emissions vehicles comes as part of the ACT-National coalition’s plan to introduce charges for all vehicles. According to Brown, this is so that Kiwi motorists pay the same amount to use the road based on distance and weight, rather than the type of fuel their vehicles are powered by.