Thursday, 5th April, 2018
Every cent of the 23.5c a litre increase represents more costs that freight and other businesses will likely pass on to customers, adding millions of dollars to the price of goods & services and ultimately adding to inflation.
Michael Barnett, head of the Auckland Business Chamber was responding to the Government announcement that it plans petrol tax hikes of 9c to 12c a litre phased in over the next three years on top of a regional petrol tax of 11.5c a litres planned by Auckland Council.
“I am aware of three mid-sized freight companies that will collectively face petrol price increases of around $1 million per annum,” says Barnett.
“Other businesses are telling me a similar story, and making the point that tight margins means that every cent will get passed on.”
“People understand that Auckland transport congestion needs a dramatic fix and time is running out – but is this the best way?”
Barnett says that early reactions suggests most people believe it isn’t the best way.