Transport – Fuel excise and RUC reduction must be extended

The road transport industry has challenged the Government to extend the reduction in fuel excise and road user charges (RUC) indefinitely.

“Extending the reduction is vital in order not to increase the pressure on hardworking families and struggling businesses,” says Ia Ara Aotearoa Transporting New Zealand Chief Executive, Nick Leggett. “Many kiwis are only just keeping their heads above water at the moment and we need the Government to do what it can to help them through.”

The Prime Minister, when questioned by media this morning, would not commit to any continuation of the reduction scheme beyond August-September. Nick Leggett says that 93 per cent of New Zealand’s freight travels on the back of a truck and the road transport sector continually strives to drive efficiencies in their businesses.

“The industry, which helped carry New Zealand through Covid-19, is coming under intense cost pressures, meaning that any increase in freight transport costs will have to be passed on through the supply chain to the consumer at the supermarket check-out.

“The 36 percent discount in RUC announced and then extended earlier in the year was welcome. However, fuel prices are even higher now and despite rosy talk from the Government, these higher prices are likely to continue for some time.

“The reality is that half the Government’s $27 per week cost of living payment will be wiped out immediately if people are having to pay an additional 25 cents per litre on fuel. Removing the RUC reduction to the trucking industry would also raise the cost of everything we buy in the shops, easily wiping out the other half.

“The Government has a simple decision to make here,” says Leggett. “Return fuel taxes to their original excessive levels, or commit to providing Kiwis longer-term relief from this cost-of-living crisis.”