Petrol and diesel prices as at 1 July 2020

On 1 July petrol excise tax rose, as it does usually is once a year, by 3.5 cents per litre (cpl), which with GST added makes an even 4cpl at the pump. No increase in the price of diesel though, although the Road User Charges diesel vehicles pay instead rose by an equivalent amount – 5%. While pump prices vary, at $2/litre, that means motorists are paying $1.12/litre in tax (incl. GST and the Emissions Trading Scheme levy) – or about $1.23/litre in Auckland with the Regional Fuel Tax. That means taxes make up 56-60% of the pump price, so it’s no wonder retail prices remain high even with low oil prices.

In 2008 when petrol prices first went above $2/litre, the high cost of oil then made up about $1.20/litre of the price, and taxes were nearly half that amount. Now that’s virtually been reversed – the current oil price makes up about 50c of the pump price, while taxes are about $1.10/litre (or over $1.20/litre in Auckland). The balance of the retail price covers the costs of distributing and retailing fuel. The end result is the same, with petrol prices around $2/litre, it’s just that nowadays oil prices don’t have a big impact on what we pay – instead its tax (most of which is fixed excise to fund our transport system).

Petrol and diesel prices as at 1 July 2020
  National fuel price
91 Octane 199.9
Diesel 134.9
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