Radio New Zealand - Te Reo Irirangi o Aotearoa

Petrol excise duty and road user charges to rise

Updated at 9:49 am on 13 June 2012

The Government has confirmed a 2 cents a litre rise in petrol excise duty and road user charges.

Transport Minister Gerry Brownlee said on Tuesday the increases will lift the average running costs for a petrol vehicle by about $30 a year and take effect from 1 August.

Mr Brownlee says the increases are effectively a catch-up to meet the Government's land transport expenditure targets.

The minister says the road user charges and excise increase is expected to generate about $90 million in 2012/13 and approximately $100 million each year thereafter.

An increase in petrol excise duty and road user charges of 1.5 cents a litre was originally scheduled to take effect in July last year.

However, the Government deferred their introduction due to the global financial crisis and the Canterbury earthquakes.

The Labour Party says a rise in charges is a needless move that some motorists can ill afford.

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