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Aucklanders to face higher fuel prices


Fuel levy given the green light

Aucklanders are to face higher fuel prices after the Government agreed to allow Auckland Regional Council to impose a fuel levy to fund new projects.

The levy, on petrol and diesel within the Auckland region, would be phased in over three years, starting with 2 cents per litre from July 2009, 5 cents from July 2010 and 9.5 cents from July 2011 through to 2039.

The levy was expected to raise around $110 million a year once the full 9.5 cent levy was being collected.

Transport Minister Annette King said today that the levy funds would be used towards several projects with public transport able to use more levy money than others.

The main project that will benefit will be the Auckland passenger rail electrification project which will get 8 cents of the regional fuel levy revenue when the regional fuel levy rate is 9.5 cents. One cent will be used to construct a new road linking the Whangaparaoa Peninsula to State highway 1 at Redvale (Penlink) and 0.5 cents will go toward improving ferry terminals and developing an integrated public transport ticketing system.

"Regional fuel levy is an additional funding tool available to regions for transport projects they have identified as high priority, but that will not reasonably be funded from any other source in the timeframe desired," Ms King said.

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