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Fuel taxes and rising pricing

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Interesting to see the Government does not get more fuel tax because
of rising pricing (from a FB post by Chris Bishop):

-----

Many Kiwis have asked us if the Government will receive windfall
tax-gains as a result of rising fuel prices.  Short answer: NO! It's a
fair question though, so here's what you need to know.

New Zealand's petrol excise tax is a fixed number of cents per litre,
not a percentage of the pump price, so the tax take does not increase
when fuel prices go up.

GST revenue on fuel theoretically rises when pump prices increase, but
we are advised that in the context of current price increases, this is
expected be offset by reduced fuel demand and by lower discretionary
retail spending elsewhere as households adjust their budgets.
 
I know this is something many people have asked in good faith, so it’s
disappointing to see Chris Hipkins making factually inaccurate claims
in response.  It's simply misleading for him to allege that the global
oil-price shock will somehow benefit the Government at the expense of
everyday Kiwis. The simple reality is that petrol price increases will
not benefit the Government financially - in fact the opposite is more
likely to be the case.

We understand that the global fuel crisis is causing anxiety for many
Kiwis. We know you are concerned about the cost-of-living.  Rest
assured, we will continue to respond carefully to make sure Government
actions don't make this global situation worse for you here at home.
This is a time for factual information and that's what the Government
will keep providing you.

-----

So interesting to see that fuel taxed at the pump is a fixed price per
litre, except GST.  I can understand the logic that the increased GST
take from rising fuel prices is offset by likely reduced spending
elsewhere but this is conjecture and not fact.  There are a large
number of us living in retirement with no work-related income.  The
cost of petrol will not change my spending habits because I do not
spend much on fuel taxed at the pump.  For the record, I have a BEV
and diesel-powered car).  The ride-on and boat don't use much petrol.


-- 
Crash McBash

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Fuel taxes and rising pricing Crash <nogood@dontbother.invalid> - 2026-03-24 10:38 +1300
  Re: Fuel taxes and rising pricing Gordon <Gordon@leaf.net.nz> - 2026-03-23 23:22 +0000
    Re: Fuel taxes and rising pricing Crash <nogood@dontbother.invalid> - 2026-03-24 21:10 +1300
      Re: Fuel taxes and rising pricing Gordon <Gordon@leaf.net.nz> - 2026-03-24 23:37 +0000

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