Every cent of the 23.5c a litre increase represents more costs that freight and other businesses will likely pass on to customers, according to the head of the chamber of commerce in NZ’s largest city.
It will also add millions of dollars to the price of goods and 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 litre 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.