The big government fuel rort scandal

The big government fuel rort scandal

Ed Speak

So petrol has topped the $3 a litre mark, but still the three ruling factions in government are fighting it out to see how much more they can take out of the lolly shop they seem to think the motorist represents.

Already the government takes 59.524c from every litre for the National Land Transport Fund. Then another 6c/litre goes into the ACC Motor Vehicle Account, and another 0.66c to the Local Authorities Fuel tax, plus another 0.3c/litre for the Petroleum or Engine Fuels Monitoring Levy (figures AA of NZ).

On top of all this tax there’s GST of 15 percent. So that’s tax on tax as far as the excise duty is concerned, or altogether another 45c/litre GST on $3/litre petrol.

You’d think more than a third of the cost of a litre of petrol would be enough for this government, but no!

First up, Phil Goff in Auckland, instead of cutting costs as he was advised, has persuaded his former caucus mates to clap 11.5c/litre on petrol bought in Auckland City – which stretches from the Bombay Hills south of Auckland to beyond Warkworth –  to fund what I suspect will turn out to be mostly new rail links to South and West Auckland.

Then the PM wants to put another 9c/litre to build better roads in rural areas, on top of the nearly 60c/litre already being taken for roading.

So, for Aucklanders that’s more than $1,31c/litre for every $3/litre that goes in your tank ($1,20 for the rest of us).

But the lolly grabbers haven’t finished yet. Now Climate Minister, Greens co-leader James Shaw, wants to tax every non-electric vehicle coming into New Zealand so he can give it to those who can afford to buy an electric car, which he admits are too pricey for most of us.

Meanwhile the government says it’s going to investigate to see if there’s price fixing by the petrol companies. According to Z Energy, after distribution costs etc only 4-5c/litre profit goes to them. So where’s the rort? Maybe look no further than the government.

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