Road-user charges to drop 36%

Road-user charges (RUC) will be cut by 36 per cent across all rates for three months from late April after the government revealed full details of its transport package in response to the “global energy crisis”.

Michael Wood, Minister of Transport, announced the extra measures designed to support New Zealanders in the wake of soaring fuel prices following Russia’s invasion of Ukraine.

The government has already slashed fuel excise by 25c a litre for three months from mid-March in an effort to provide motorists with some relief from rising prices at the pumps.

Meanwhile, Wood says funding for local government to implement half-price public transport fares will also be available from April 1 to June 30, 

“I want to assure road-user charges payers they will get three months of reduced rates, even with the later start date,” adds Wood. 

“The complexity of road-user charges means that a few more weeks are required to put the reduced rates in place.

“The road transport industry plays a vital role in the supply of food and other essential goods across the country. It was important to the government that we backed the industry through these challenging times.”

He says the cut in the fuel excise duty has had an immediate impact at the pumps and hopes some of the pressures facing New Zealanders will be reduced once the other parts of the package are in place next month.

“The Russian invasion of Ukraine will continue to impact global energy markets and supply chains. We will be actively monitoring the situations over the coming months and working with our partners to make sure we have the overall package right.”