No Auckland Regional Fuel Tax from June 2024
9 February, 2024
Today, the New Zealand Government declared it will eliminate the Auckland Regional Fuel Tax by the end of June 2024.
This announcement was made by Prime Minister Christopher Luxon and confirmed by Transport Minister Simeon Brown as a significant action under 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,” states Brown.
Introduced on 1 July 2018, the Regional Fuel Tax (RFT) required Auckland residents to pay an additional 11.5 cents per litre for fuel, a charge not applied to other parts of the country.
“Removing this extra tax of 11.5 cents per litre on petrol and diesel means the driver of a ‘ute’ will save around $9.20 every time they fill up, while a ‘SUV/Sedan’ driver will save around $5.75,” the Transport Minister explains.
By September 2023, the RFT had generated approximately $780 million, with $341 million remaining unallocated. Originally, these funds were earmarked for significant transport initiatives in Auckland, including the $830 million O Mahurangi-Penlink road. However, financing for this project is now being provided directly by the government.
Transport Minister Brown disclosed that the RFT funds have been utilized by Auckland Transport for the development of cycle lanes, the installation of redlight cameras, speed humps, and the reduction of speed limits throughout 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,” Brown added.
Highlighted projects for these funds include the Eastern Busway, enhancements to the City Rail Link, and various transport infrastructure improvements to support growth.
The termination of the Auckland Regional Fuel Tax is scheduled for 30 June 2024.
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