If it’s not the multibillion-dollar companies that sell it to us hiking the price any time the oil value changes, then it’s the government slapping a fresh round of taxes to take its cut. As of 1 July, we’ve seen another 3.5 cents a litre added at the pump, thanks to a law passed under urgency that implements the second of three annual increases to the fuel tax.
The tax increase comes at a time when prices were already heading northwards, with a litre of 91 octane costing an average of $2.28, according to AA Petrolwatch, while 95 octane is $2.37 and diesel $1.68 pre the July hike.
AA spokesman Mark Stockdale said that the higher fuel prices won’t be welcomed by the public. “Last year’s increase came at the worst possible time; fuel prices were at record highs, and then we had a tax increase at the same time and that was not popular. This won’t be popular, either, but it’s not uncommon. We’ve had regular tax increases virtually every year to go towards funding our land transport system … [but] people are going to wonder what we are getting for our money,” said Stockdale.
Information about the third tax increase has yet to be released.