Fuel tax: How to save cash after 29 cent per litre price rise

  • 30/06/2023

The 25 cent per litre petrol tax reinstatement is just hours away.

At midnight, after more than a year of cheaper petrol, the Government will add the fuel excise duty - cut to help New Zealanders tackle the cost of living crisis - back on.

While swarms of Kiwis are expected to rush to the pump to beat the price increase, here are some ways you won't notice the additional cost as much come Saturday.

Use a rewards card

Many retailers have rewards schemes where consumers can save on filling up with the simple swipe of a card.

For AA Smartfuel (BP) or Flybuys (Z and Caltex) loyalty card holders, consumers have the option of instantly saving 6 cents per litre. On given days, additional discount specials will apply. 

Alternatively, motorists have the option of "stacking" discounts to save it for later. 

These reward schemes are particularly worthwhile if you always buy petrol from the same retailer.

Utilise technology

If you're willing to drive to find cheaper fuel but don't know where to look, the Gaspy app can help. 

Gaspy uses the collective knowledge of its users to provide a list of fuel prices at service stations in your area, ranked from cheapest to most expensive. 

Additionally, Z Energy has its own 'Sharetank' app.

"Sharetank scans every Z service station within 30kms of your current location to assess the lowest pump price within that area, allowing customers to pre-purchase up to 1000 litres of fuel," a spokesperson said.

The 'virtual fuel tank' lets people buy the cheapest fuel available. Those litres can then be redeemed at a later date at any Z station across Aotearoa, regardless of what is shown on the pump at the time."

Fuel tax: How to save cash after 29 cent per litre price rise

Avoid peak hour traffic, if you can 

Opting to work outside of the typical 9-to-5 schedule or work from home on certain days can save money, given constant acceleration and braking consumes more fuel. 

Another alternative is to consider carpooling or taking public transportation, such as a bus or train, which is half-price from Saturday if you're under 25.

Stick to the speed limit

The AA says the difference between driving 110km/h and 100km/h is about 13 percent in fuel use. 

"Your car will perform more economically if you travel at a more constant speed," the association said. "Don't exceed the limits and, if your car is fitted with cruise control, consider using it. 

"Driving faster doesn't necessarily mean you'll get to your destination sooner and there are obvious safety issues."

Fuel tax: How to save cash after 29 cent per litre price rise
Photo credit: Newshub.

'Love your car' 

The AA says little things like making sure your car's tyres are properly inflated and less load can make a big difference.

"Love your car because a little love can go a long way to reducing the burden on your bank balance.

"Regular servicing, ensuring your car is fitted with the best tyres for your regular driving conditions, maintaining the recommended tyre pressures and correct wheel alignment all also contribute to potential cost savings.

"The heavier a vehicle is, the harder the engine has to work so keep your load down. Take those golf clubs and that sports gear out of the boot or remove the bike or roof racks when you're not using them."