The Herald reports:

The Government has passed under urgency a law implementing the second of three annual increases in fuel tax – adding another 3.5 cents per litre to the cost.

The increase kicks in on July 1, the same day as road-user charges also increase.

The increase comes at a time when prices at the petrol pump are creeping up.

As at yesterday, a litre of 91 octane was an average of $2.28 according to AA Petrolwatch, while 95 octane was $2.37 and diesel was at $1.68.



National’s transport spokesman Paul Goldsmith said the fuel taxes placed a huge burden on families.

“Prices at the pump are at some of the highest we’ve seen in years. The extra fuel taxes swamp any benefit to be gained from the potential handouts of the Budget. This government gives with one hand and takes more with the other,” he said in a statement.

Transport Minister Phil Twyford said every dollar raised through the petrol excise is spent on roads, rail and public transport.