It will cost more to drive diesel from July, with Road User Charges for light vehicles rising from the current $72 per 1000km to $76.
The increase is part of a rates schedule announced in June 2018, which specified rises in September 2018, July 2019 and July 2020.
Petrol Excise Duty also goes up from just over 66 cents per litre to about 70 cents per litre, although motorists may find that easier to swallow given recent petrol price decreases during Covid-19, following a drop in global demand.
That 70 cents will go to the National Land Transport Fund. Also added to the Duty is 6 cents for the ACC Motor Vehicle Account, 0.66c for Local Authorities Fuel Tax and 0.6c for the Engine Fuels Monitoring Levy. Auckland motorists also pay an additional 10c Regional Fuel Tax.
GST is also charged on the overall price of the fuel, which already includes the Excise Tax.
The only Excise duty on diesel at the pump is the Local Authorities Fuel Tax. The rest of diesel RUCs are paid separately and up front.
The extra cost to households depends on the type of vehicle, its fuel consumption (in the case of petrol) and the distance travelled. But the Government says that for one car travelling 11,500km (the national average), the increase will equate to an extra 67-76 cents per week or $35-40 per year.
The Government says it did consider the financial impact in the wake of Covid-19, but that the current increases are necessary to develop the land transport network, which in turn stimulates the economy.
It has ruled out any further increases for the next three years.