Kiwis are being warned petrol prices could rise above $3.50 a litre when the Government’s 25 cent reduction in fuel excise tax ends.
The tax reduction, which came into force in April, is set to end in July — unless extended.
And despite the tax cut, prices are already climbing again with 91 hitting $3 a litre in parts of the country.
Waitomo group managing director Jimmy Ormsby told AM’s Melissa Chan-Green prices will only get worse when the tax relief ends.
“Unfortunately there’s no limit, there’s no cap,” Ormsby said when asked how high prices could rise. “Anything over $3.50 a litre wouldn’t be a surprise to me but hopefully it doesn’t get to that, hopefully there is some relief.”
Yesterday the cost of 91 at Bohanna Mobil in Waikanae was $2.90 a litre, although with a Mobil Smiles card that came down to $2.80 [That works out to about $US 7 per US gallon at present]. The effect on motorists should result in James Shaw’s ’emissions target’ being reached alone and he may be able to leave farmers alone — or is that wishful thinking? —Eds