The New Zealand government has confirmed the end of the petrol tax, announcing a major shift in how drivers pay for road use, RNZ reported.
From 2027, all light vehicle owners, including those with petrol, diesel, hybrid, and electric vehicles, will be required to pay Road User Charges (RUCs) based on how far they drive and the weight of their vehicles.
Transport Minister Chris Bishop called it “the biggest change to how we fund our roading network in 50 years.” He added, “It’s not fair for Kiwis who drive less or can’t afford a hybrid to keep paying more. This change is necessary and long overdue,” as quoted by RNZ.
Currently, only diesel, electric, and some hybrid vehicle owners pay RUCs, while petrol users contribute through fuel taxes. Under the proposed system, all drivers will pay based on the number of kilometres driven, replacing the flat-rate fuel excise duty.
Supporters argue that the plan could modernise road funding and offer more flexible payment options. However, as RNZ reported, several key questions about implementation, fairness, and pricing remain unanswered.
As reported by RNZ, Chair Glenn Barclay said, “It should not be for the profit of anyone,” highlighting concerns that private companies could be involved in managing the new system.
According to AA’s Terry Collins, the proposed changes might work well for some vehicle owners, especially those who drive infrequently. He added, “Nothing’s going to be cheaper, we know that. Realistically, we want to be building a modern, safe roading network, and that’s not cheap", reported by RNZ.
The government has promised consultation before any final decision is made. Until then, the proposed overhaul has sparked debate across the country about how best to fund the roads of the future.
ISSUE
Leave a Comment