Today’s decision by the National Party to take up the AA’s calls to suspend the five-cent per litre roading levy on petrol while prices are high, has been welcomed by the motoring organisation.

AA spokesman, Greg Hunting, said the organisation had been calling for political parties to take this step every since prices rose after Hurricane Katrina hit the United States.

“The GST on petrol being collected has increased from around 11 cents per litre when the five-cent levy was announced, to around 17 cents per litre now that petrol prices are at $1.50+. We believe the GST windfall should be used to replace the levy so that road funding doesn’t suffer and motorists get at least some relief from higher prices,” Mr. Hunting said.

“We’d also welcome a similar undertaking from other parties,” he said.

“The impact of high petrol prices hits everyone because we can’t avoid driving to and from work, taking the kids to and from school and going shopping.

“We’re also going to see higher supermarket prices – in fact higher prices on any goods and services involving transport - because of the high fuel prices and that will have a very negative impact on family budgets.

“It’s also pleasing to note that there has been a slight fall in retail prices of between two and three cents per litre today.

“Based on world prices which have fallen to US $64 per barrel today we believe there should be further falls as there have been in Australia where prices today have dropped seven cents from when they peaked last Friday,” he said.

Ends

For further information contact

Greg Hunting on 09 966 8949

The New Zealand Automobile Association is an incorporated society with over one million members. It represents the interests of road users who collectively pay in excess of $2 billion in taxes each year through fuels excise, road user charges and GST.