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Fuel Tax Uncertainty and Road Plans

Fuel Tax Uncertainty and Road Plans

Published 1 day, 5 hours ago
Description

Fuel tax hikes may still loom under Transport Minister Chris Bishop, despite his earlier doubts, as global events like the Middle East peace deal could sway oil prices. Bishop admits a 12-cent petrol tax bump would hit households hard but insists the current funding model is unsustainable. Labour’s Tangi Utikere blasts the National Party’s approach as out of touch, noting families are already struggling—and Labour has firmly ruled out any fuel tax increases. Bishop’s plan leans toward digitally monitored road user charges, but he’s not rushing the shift. The government’s land transport policy statement may be delayed due to volatile fuel prices, budget hurdles, and forecasting challenges, though major changes aren’t expected. Roads of National Significance projects remain at a $56 billion cost, with no updated figures; some, like the North West Alternative State Highway, face 20-year timelines and uncertain budgets. Bishop confirms rescoping will cut costs, and high-risk projects will undergo a new investment assurance process—with tolling under review once the road user charge system matures.

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