“Diesel prices have been static for 13 weeks, an incredibly long run and the longest period we have seen without any price change,” says AA PetrolWatch spokesperson Mark Stockdale.

As scheduled, petrol and diesel prices rose on 1 October with the increase in GST and petrol excise. The price of diesel rose 3 cents to $1.22 per litre, and 91 octane rose 7 cents to $1.81 per litre at most service stations. The 7 cent per litre increase includes the GST and 3 cent petrol excise increase. The equivalent diesel Road User Charges also rose at the same time.

“The increase in petrol excise means motorists are now paying 59 cents per litre in excise, 3 cents for the Emissions Trading Scheme, and another 23 cents in GST, which combined is more than the actual cost of the imported fuel.

“7.7 cents of the total GST is collected on the fuel excise portion, and the AA again calls for the government to remove GST on excise, which is a tax on a tax. Motorists do not begrudge paying excise or Road User Charges, which are wholly directed towards improving New Zealand’s road network. Motorists simply do not want to be taxed twice,” Mr Stockdale says.

“The average motorist is contributing $100 in GST on fuel excise a year, which if it was removed would have offset the effect of the 1 October price rise,” says Mr Stockdale.

Gull introduces biodiesel

Gull New Zealand has begun retailing biodiesel at selected Auckland service stations. The Gull Diesel Max contains 5% renewable diesel sourced locally from waste vegetable oil, mixed with 95% mineral diesel. It sells for 1-2 cents less than conventional diesel.

“The AA congratulates Gull for introducing biodiesel to its range. Gull was the first oil company to sell bioethanol-blended petrol in 2007 and so now diesel vehicle owners will also be able to purchase an environmentally-friendlier fuel,” says AA PetrolWatch spokesperson Mark Stockdale.

The AA says B5 biodiesel should be suitable for use in most diesel vehicles, but recommends owners check with the vehicle manufacturer to verify the car’s compatibility. The AA also advises motorists not to use biodiesel in recreational boats.

For more information, go to: www.aa.co.nz/aapetrolwatch

For more information contact

Mark Stockdale
AA PetrolWatch Spokesperson
New Zealand Automobile Association
T. +64 4 931 9986
M. +64 21 0220 4700
E. mstockdale@aa.co.nz

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