Excise Duty on Petrol Welcomed by Hospitality and Accommodation Businesses

petrol taxes

The 25c reduction in excise duty on petrol is welcomed by hospitality and accommodation businesses across the country, said Hospitality New Zealand.

“Everyone needs urgent relief at this time of a cost-of-living crisis, so this was an essential move,” said Chief Executive Julie White.

“But more will likely be needed because we could soon be paying $3.75 a litre even with the reduction, based on predictions at the weekend of the price reaching $4.

“The price of petrol affects the price of everything our businesses use, particularly food and beverage, and continuing hikes will only make a tough situation even tougher.

“They come after food prices rose 5.9% in the past year, with fresh fruit and veges up 15 percent.

“Hospitality and accommodation businesses simply cannot absorb the additional costs caused by petrol price hikes on top of those food increases as they continue to struggle as a result of the Covid downturn.

“Unfortunately, they will still have to put prices up, and that will hurt consumers and keep more of them away. It’s a vicious cycle.

“Higher petrol prices also put a damper on people going out for a coffee or a meal or travelling domestically.

“This is a timely reminder to the Government on how it collects taxes because fuel is an essential commodity whose price affects every part of the economy.

“But it’s not just petrol prices and it’s not just now.

“The Government needs to deliver a broader plan that tells us what they will do to help alleviate cost pressures further out than the three months this reduction covers because it looks like this will get a lot worse before it gets any better.

“On behalf of hospitality staff who rely on public transport, we welcome public transport fares being cut in half.”