Family First Calls For Urgent Petrol Tax Relief

Predictions today that global oil prices could reach record price levels over winter due to Middle East tensions, Chinese growth and Opec restricting supplies will cause kiwi families to despair about further cost increases in their household budget.

Family First is calling on the government to urgently cut the level of petrol tax in order to assist families.

According to the Automobile Association (AA), for every litre of petrol purchased, motorists pay taxes, duties and levies totaling almost 50 cents. This will increase a further 10c in Auckland and Wellington as a result of the latest Budget. In addition, GST of 12.5% on the total price is collected. This ‘take’ increases as fuel prices increase.

“Because of the latest consumers’ price index showing a big rise in the cost of home basics, including costs which are effectively passed on at the retail level to the consumer (such as transportation costs), the financial squeeze on families will start to strangle many families,” says Bob McCoskrie, National Director of Family First NZ. “Petrol price hikes simply exacerbate the problem.”

“Families traveling to school, jobs, sports and music practices, and doing family trips and grocery shopping will be stung with greater costs, and families in the outer suburbs and rural areas will suffer further as they do not have access to public transport and have no choice but to travel long distances in their cars,” says Mr McCoskrie.

“Based on the recent Budget, cutting petrol tax is both affordable and commonsense because it provides actual relief as well as taking pressure off inflation and interest rates.”

“The Government should not be allowed to get drunk on petrol tax while families struggle to meet their family needs,” says Mr McCoskrie.


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