The Taxpayers’ Union says that the focus on petrol margins earned by fuel companies, is a classic ‘bait and switch’ by politicians to avoid questions about the enormous taxes they impose at the pump. Responding to Energy and Resources Minister Judith Collin’s announcement of a market study into fuel prices/returns to be undertaken by the MBIE, Jordan Williams, Executive Director of the Taxpayers’ Union, says:

“While an examination into petrol company fuel margins is welcome, it is a bit rich to blame high fuel prices on the fuel companies when the amount of tax on fuel is nearly 20-times the reported profit by fuel companies on a per litre basis.”

“Z’s net profit on fuel is around 5 cents per litre. In comparison, at the current price of 91 octane total tax is 97 cents per litre.”

“If MPs were genuine in their desire to find out who is rorting motorists, they’d be examining petrol taxes, not just fuel margins. Until they do, their concerns about petrol prices are little more than crocodile tears.”

|  A NZTaxpayers Union release  |  February 9, 2017  ||