15 March 2022

New Zealand Service Announcement | Service Update 15 March 2022

The Government announced on Monday 14 March that, effective 11:59pm that evening, fuel excise taxes on petrol would reduce by 25c per litre for the next three months.
 
At the same time, a similar reduction to Road User Charges (RUCs) for diesel vehicles was also indicated. However, an implementation date for this has not been confirmed.  It is also unclear how this will be applied but, unlike petrol, it will not be immediate.  With the exception of an increasing number of hybrid and electric vehicles, the vast majority of our fleet are diesel vehicles.
 
We will keep our customers informed as we learn more about the Government’s plan to reduce RUCs and the effects this will have across our fleet.
 
Additionally, there has been no mention of relief for rail, Cook Strait ferry services, or coastal shipping – all of whom play a significant role in transport around New Zealand.
 
Globally, the impact on international air and ocean fuel costs is also surfacing.  Variable ocean bunker adjustment factors are rising with a movement in airfreight rates also expected.
 
Despite the Government’s announcement, it is likely that cost of diesel will continue to increase in the short term unless more urgent and clear direction from the Government is given.
 
We understand these uncontrollable factors have affected the cost to service our customers and we will communicate any changes as soon as we are able.