19 Dec 2012

Petrol excise to rise 3c every year for 3 years

7:23 am on 19 December 2012

The retail price of petrol is set to rise nine cents per litre over the next three years because of an increase in petrol taxes.

The Government has announced the petrol excise duty will go up by three cents per litre on 1 July first next year, and again in 2014 and 2015.

Transport Minister Gerry Brownlee said on Tuesday the increases are required to deliver the roads of national significance programme and other road projects.

He said the announcement gives businesses and motorists time to plan for the extra cost.

Road user charges for diesel vehicles will also go up by an equivalent amount.

The Labour Party's finance spokesperson, David Parker, has criticised the Government for lifting the petrol tax.

He says it is a cynical move not to increase excise duty last year in advance of the election but to do so now.

Mr Parker says the forecasts reveal the Government's economic policies are failing.

A policy analyst for the Automobile Association, Mark Stockdale, says it's easier for motorists to accept a three cent rise each year than to be hit with a bigger increase to make up a shortfall further down the track.