MTA calls for clarity on fuel excise duty reinstatement

With the fuel excise duty (FED) subsidy set to end in two weeks, the Motor Trade Association (MTA) is calling on the New Zealand Government to ensure that all fuel stations are reimbursed for any costs they incurred when it came into effect.

From 30 June 2023, the price of petrol will rise by 25 cents as the Government lifts the discounted fuel tax that came into effect in March 2022 to alleviate the cost of living many Kiwis continue to face.

Other than an end date, MTA wants to know how the reinstatement will be managed for the benefit of both the industry and motorists.

The Association also recommends that motorists should plan their fuel stops before the fuel tax returns to its full amount to avoid chaos at the pump.

“MTA spoke with the Ministry of Business, Innovation, and Employment (MBIE) immediately after the announcement of the subsidy,” says MTA.

“MTA received an assurance from Energy Minister Megan Woods that it was not intended that any business would lose money as a result of the scheme.”

Around a third of the Association’s fuel retail members are independent operators, meaning this is an issue it isn’t taking lightly.

“There was no consultation or feedback from industry on the unintended consequences of removing the FED. There is an opportunity to learn from this for future programmes,” MTA adds.

MTA is welcoming any conversations between the industry and the New Zealand Government regarding the reinstatement of the full fuel excise duty.