Auckland fuel tax confirmed

A new fuel tax on Auckland motorists will be introduced by the new Labour-led Government in order to help fund transport infrastructure. 

Incoming Transport Minister, Phil Twyford, said the fuel tax would contribute “about 10 percent” of the $15bn, 10-year infrastructure plan Labour has committed to. The fuel tax is said to be around 10c per litre. 

At the centre of these plans is the development of a “21st century, rapid-transit network” including light rail, or trams beside key Auckland roads, Twyford said. Allowing for a congestion-free alternative to driving. 

Twyford said the Government will change the law to allow a regional petrol tax and then it will be up to Auckland Council to decide when it wants to levy the tax.

Barney Irvine, from the Automobile Association, goes further and suggests that as part of the council’s Long Term Plan consultation early next year, Auckland should decide as to whether they would prefer a fuel tax, rate rise, targeted levy or another option to fix the city’s congestion.

This isn’t the first time a fuel tax has been contemplated. Auckland mayor, Phil Goff, and his predecessor Len Brown have long been pushing for a regional fuel tax in order to fund new infrastructure to the region.