If you think city fuel prices are high…

July 9, 2008

… try driving in the provinces.

Poneke  tells us that 91 octane petrol in Wellington has reached 218.9 cents a litre.

In Wanaka it’s 2.269 for 91;  and 2.349 for premium. 

Diesel is 199.9 cents a litre and of course Road User Charges come on top of that.

Ouch.


Fuel Tax Better Than Road User Charges?

July 3, 2008

Petrol is more expensive than diesel because the former has a fuel tax levied on it and the latter doesn’t. But diesel powered vehicles pay Road User Charges instead.

The chair of the Road Transport Forum, Steve Doughty told Mary Wilson on Checkpoint last night that he’d be keen on an investigation to determine if fuel tax might be better than RUCs.

My initial reaction to this is positive. RUCs are based on distance, the further you go the more you pay. That sounds fair enough until you work out that vehicles which travel further efficiently pay more than those which travel a shorter distance inefficiently.

Fuel taxes, are consumption taxes so the more you use the more you pay and there is a financial incentive to use it efficiently.

Doughty reckons that the administration on RUCs costs around $100 million a year. That sounds high but there must be a lot of paper work involved with all the vehicles each with individual RUCs which need to be purchased and processed.  It would be simpler and cheaper to pay fuel tax at the pump as we do for petrol.

Changing from RUCs to fuel tax might be more expensive for people with diesel powered cars who drive short distances. But it would definitely be easier and, by reducing the adminsitration,  possibly cheaper for every vehicle covering long distances.

It would also relieve traffic police of the task of checking RUCs are up to date and writing tickets if they’re not 🙂


Govt Buys Rail – Road User Charges Rise

July 2, 2008

Is it just a conincidence that road user charges  went up on the day the Government is congratulating itself on buying back the railways and putting Jim Bolger, the man who presided over the “failed policies of the 90s” in charge of it?

Trucking companies are furious after the increase was announced on Monday night and came into effect yesterday.

Road Transport Forum New Zealand chief executive Tony Friedlander said the group, which represents about 80% of the country’s commercial road transport operators, last year sought assurances from Transport Minister Annette King that operators would be notified of increased charges.

The forum received written confirmation members would be informed of changes.

“It is not just the increase. It’s that it came without notice having received assurances. On top of the highest fuel prices in history, increases to the accident compensation levy and wage interest costs, it will do extreme damage to industry.

“Members have said they will have to pass costs as soon as they can.

Producers, processors and consumers are already suffering from steep rises in fuel prices. The increased tax on diesel powered vheicles and others weighing more than 3.5 tonnes  increases the cost of business and living.

The increase was announced in a statement posted on the Government’s website on Monday night. No media statements were issued.

“The timing of this increase and the way it has been done mean the minister could not have done more damage to our industry if she had deliberately tried,” Mr Friedlander said.

“She should not underestimate how angry our members and the industry are.”

Mr Friedlander said the increase would inevitably mean higher costs for businesses and higher prices in supermarkets.

However, Ms King said the impact would be “relatively insignificant” and she did not expect any noticeable effect on consumer prices.

Is Labour trying to self-destruct or are Ministers so out of touch they don’t understand the financial strain businesses and households are facing? When your budget is already overstretched you notice every cent.

Ms King said the increases were introduced to defray costs of the national land transport programme. Under the programme, $2.7 billion was allocated for transport activities in 2008-09. This included about $791 million for state highway construction, $325 million for passenger transport services and infrastructure and $273 million for road policing.

“Without all road users paying their fair share, this level of investment cannot continue to be sustained,” she said.

Does any of that passenger transport component include the trains and ferries her Government just bought? Does it matter that in the provinces we don’t have passenger trains and only cities have buses?

Charges for a 44-tonne truck and trailer unit which travelled 100,000km a year would increase to about $56,000, about $4000 more for operators, Mr Friedlander said.

Road user charges for transport operators in New Zealand were already 200% higher than those paid by Australian businesses using comparable trucks, he said.

Another day, another tax increase, another reason why living or doing business in Australia becomes more attractive.

Bus and Coach Association chief executive Raewyn Bleakley said members were “shocked and angry”. The “highest level of feedback” about the charges had been from tourism operators, she said. “Tourist operators negotiate rates for services months in advance, and this increase will leave them screaming. This will be noticeable in places like Queenstown.”

You can’t take a train or ferry to Queenstown. But this wouldn’t have anything at all to do with the fact that the Government spent $690m buying the railways, would it?

[Update: have just found a comment on Keeping Stock from getstaffed raising this issue]


Petrol up 6c

June 10, 2008

Ouch: Caltex has put the price of petrol up by 6 cents to 206.9 cents/litre for 91 octane; 95 is 211 and diesel is 179.9.

The first impact is on everyone’s pockets; it will also boost inflation because transport is involved somewhere in just about everything we do.

The continually rising price of fuel is also one of the reasons that extra money thrown at health, education and other taxpayer-funded sectors hasn’t made much impact on services – it’s gone on rising costs leaving less for the front-line services.


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