Fuel tax hike on the cards across New Zealand

The Government is proposing a countrywide fuel tax hike as part of a major shake up of the transport system.

It has proposed an extra 10 cents a litre of tax on fuel. Prices will likely rising by three or four cents a year over the next three years.

For Auckland motorists this will be on top of the expected 10 cents per litre levy from the regional fuel tax.

This means by 2021 Auckland motorists could be paying up to 20 cents per litre more in tax on their petrol.

The tax increase will not be used on State Highways. Instead the Government has reprioritised transport funding around regional roads they say have been underfunded and neglected over the past decade.

Some of the money may be used on getting cars off the road and investing in public transport, cycleways, walkways and the rail network.