Fuel prices in New Zealand are dictated by 4 main factors


Global Price of Crude Oil

The price of crude oil and refined product is set by trading positions on global commodity markets. OPEC (Organisation of Petroleum Exporting Countries) controls much of the supply of crude oil. By restricting or easing the supply of crude OPEC can exert a lot of influence on the price of crude and refined product. Refineries process crude oil into diesel and petrol which is traded on the global market as refined product. When demand is strong and refineries are operating at full capacity the price of refined product will be driven higher. Other factors impacting on the price of crude and refined product are; value of the US Dollar, political instability within the oil producing nations, demand from developing nations, unforeseen decreases in refining capacity e.g.; Japan Tsunami and speculation on global commodity markets.


Fuel Taxes

When you last bought petrol, 59.129 cents per litre was collected by the government as fuel excise (excluding GST), which is made up of:

  • 48.524 cents - National Land Transport Fund
  • 9.90 cents - ACC Motor Vehicle Account
  • 0.66 cents - Local Authorities Fuel Tax
  • 0.045 cents - Petroleum or Engine Fuels Monitoring Levy

In addition, GST is collected on the overall price of fuel including excise. The GST on excise amounts to a 7.7 cents per litre "tax on taxes". There are no taxes on diesel other than GST. Instead, diesel vehicles pay Road User Charges. All fuels also pay an Emissions Trading Scheme charge (approximately 3 cents per litre).


The New Zealand Dollar Exchange Rate

Crude oil and refined product are both traded in US Dollars. How the US Dollar is positioned against foreign currencies, including the NZ Dollar, will influence the price of the crude oil and refined product shipments that are imported into New Zealand.


Local Market Factors

Local oil companies' prices are calculated in consideration of; Cost of operating distribution networks; tanker trucks, depots, Truck Stops, and provision of fuel storage and pumping equipment, Administration and marketing costs, and of course, competition.


Excise Duty Refunds

Excise duty is a charge imposed by the government on certain products sourced from overseas and some products produced within New Zealand. In some cases, the NZ Transport Agency (NZTA) can offer refunds of excise duty. To find out more please visit the NZTA website, or download and complete the Excise Duty Claim Form MR70.

NZ Transport Agency - Excise Duty Refund Information Excise Duty Refunds

Excise Duty Claim Form - MR70