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Anon
By AA | Moderator | 844 Posts | 2 February 2011 at 3:21pm

We recently returned from a trip to Australia where petrol prices ranged from around A$1.19 - 1.24/litre.

Coming back to NZ we were shocked to see petrol prices had increased by around 10cents/litre to NZ$1.92 - 1.95/litre.

All this within such a short time!

Daniela

From the "Ask Jack" archives - 28 July 2011

jbiddle
By jbiddle | Community Member | 1657 Posts | 2 February 2011 at 3:22pm

Our Motoring Affairs team who monitor fuel prices have provided the following answer.

The difference in the price of fuel between NZ and Australia can mostly be explained by the exchange rate and fuel taxes.

In NZ there is 59 cents per litre in fuel excise and 15% GST added, plus another 3 cents/litre for the Emissions Trading Scheme.

By comparison, Australians pay 38c/l in excise and 10% GST. Then there is the difference in the exchange rate, with the NZ$ worth about A$0.77.

So the calculation is thus (using the current Sydney price of A$1.38/litre):

  • A$1.38/litre less Australian tax (excise & GST) = A$0.874
  • Convert to NZ$ = $1.135
  • Add NZ excise and ETS = $1.757
  • Add GST = $2.02/litre which is about what we’re paying