Fears Auckland fuel tax will drive black market

There are concerns a new 10c/litre fuel tax in Auckland could spark a black market.

The tax will be used for new transport projects including trams from the airport to the CBD, and another north-western route out to Westgate.

"It's going to contribute about 10 percent of the $15 billion 10-year programme we've committed to get Auckland moving again," Transport Minister Phil Twyford told Newshub.

The current Auckland price for 91 is about $1.90/litre and the tax would make it $2/litre. Of that, the actual petrol costs about $1 while the other half is all tax.

And if you're an Auckland homeowner, you're already paying an extra transport levy of $114 a year. That levy will go once the fuel tax is in place.

"Once that is in, that can come off the rates, and I think that will be welcome by ratepayers," Auckland mayor Phil Goff told Newshub.

There's a happy mayor, but fuel company Gull is not so keen. It fears the tax will prompt a black market.

"Everybody will try to avoid paying that tax," general manager Dave Bodger said.

"There are tens of thousands of motor vehicles driving into Auckland each day. They will fill up before they come in, trucks will install extra running tanks - they won't buy diesel in Auckland, it will be that simple."

However there will definitely be a couple of winners from the regional tax: service stations who are just outside the Auckland boundary and dealers of electric cars.