DRIVEN reveals the average tank of petrol costs Kiwis upwards of $165
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Petrol prices are skyrocketing across the country, and even with the Government's 25c per litre excise tax cut, Kiwis are feeling pain at the pump.
Last week, DRIVEN released a list of some of the cheapest petrol stations in Aotearoa. It revealed that the average 60-litre tank of petrol is costing upwards of $165, and up to $220 in some of the more expensive towns.
Prices of petrol around the country vary between $2.76 per litre at Gull Napier, and $3.68 per litre at BP 2go Waiheke Island (according to prices listed on the price-tracking app, Gaspy, on Wednesday 22 June).
Jimmy Ormsby, the managing director of fuel retailer Waitomo said in March, prior to the Government's announcement of the 25c per litre excise tax cut, that many Kiwis are feeling pain at the pump, with high fuel prices impacting those who are already struggling with the increased cost of living.
"High fuel prices – like grocery prices, and housing prices – are part of the cost-of-living crisis, hitting Kiwis who least can afford it. Come spend a few hours pumping gas with me to get a good taste of how tough it is for many Kiwis just trying to put food on the table," Ormsby said in March.
The Government's 25c per litre excise tax cut has provided some relief, but prices are still increasing at a rapid rate and are now as high if not higher than in March when the tax cut was introduced.
Despite this, Prime Minister Jacinda Ardern says New Zealand is ready to weather the current economic "storm".
"What I'm acknowledging, generally, is that it is a tough international environment right now but the underlying fundamentals for New Zealand are strong," she said. "Our economy has still grown and seen more activity post-COVID than we did pre.
"We know that, actually, there is underlying strength in our economy; we've got low unemployment, we've got low debt - we're well-positioned to navigate what is a very stormy, turbulent time internationally."
The Automobile Association have warned that there could be panic and chaos come mid-August if a return to normal fuel excise duties happened overnight, with calls to the Government to think about how they reintroduce it.
AA motoring affairs principal policy adviser Terry Collins said they were some of the highest prices he has seen.
"The Government has got a real dilemma on their hands and it's something they have no real control over, other than the decision on how to handle it."
Collins said even though fuel prices had probably risen higher than what they were when the Government announced the cuts, a saving was a saving.
"Imagine the impact if they hadn't taken it off, it would have been even more severe. The issue is going to be how they put it back on."
Collins said if fuel excise duties returned overnight, it could create panic, with petrol stations running out of gas and queues down the street.
"It's going to be chaos for the first couple of days leading up to that as everyone tries to fill their car up and that's going to put a strain on supplies."
A spokesperson for Energy and Resources Minister Megan Woods' office said the Government was monitoring the situation.