‘..After adjusting for the changes in the NZ dollar/US dollar exchange rate the price of Brent crude oil, in NZ dollar terms, has fallen by 38 per cent over the same period.
However, the issue is further complicated by the country’s petrol tax regime which has the following excise duties:
•56.524c a litre for the National Land Transport Fund.
•9.90c ACC Motor Vehicle Account.
•0.66c Local Authorities Fuel Tax.
•0.045c Petroleum or Engine Fuels Monitoring Levy.
Thus, we have total petrol excise duties of 67.129c a litre before tax.
In addition, GST is collected on the overall price of fuel, including excise taxes.
Thus, GST on excise tax is a ‘tax on taxes’.
If we take into account current world oil prices, the NZ dollar/US dollar exchange rate and petrol taxes there is a strong argument that 91 octane should be selling for around 170/175c a litre instead of 197.9c a litre at present…’ link
No use blaming the oil producers and retailers – the blame lies with the rapacious government. After all, they have “public servants” on $600,000 a year salaries to support..
I think fuel companies do a great job of dispensing what is an intrinsically dangerous product to a large number of petrol stations with minimal hazard. I agree the tax take is obscene. In Japan in 2008 when the GFC was beginning to bite the government wisely removed all taxes from petroleum as a contribution to keep the economy moving. I am not sure whether they have re-introduced the fuel taxes or not.
Check out this blog (with selectable currency display) of prices in Tokyo (converted to $NZ) and compare them with local Auckland prices.
http://www.expatistan.com/cost-of-living/tokyo?currency=NZD
For example: Petrol $1.64 a liter (yes, the NZ tax component is higher)
I saw on the evening news last night that petrol was the cheapest its been in months, and they told us breathlessly that if you can wait a few days it’ll go even lower. Yeah right, talk to me about cheap when it goes under a dollar a liter.
If you keep a log-book in NZ you can claim up to 95% back which I occasionally do. In OZ if you try getting above 50% back you get smacked hard.
Gas here in Seattle is about $3.00 a gallon, so that make it about 75 cents per liter, and this includes state, federal and city taxes.
Of course, our gasoline doesn’t have to be hauled across the Pacific Ocean, as is the case with New Zealand.