Gull slams regional fuel tax legislation, says it will force prices to hike
Gull general manager Dave Bodger says the regional fuel tax legislation was produced in a "Government vacuum".
Fuel company Gull says it will hold prices in Auckland for as long as it can before the city's fuel tax inevitably bumps them higher.
General manager Dave Bodger said an 11.5 cent per litre fuel tax for Auckland motorists would create a bad "state of affairs," including queues at stations before it was enforced on Sunday.
Gull supplies 6 per cent of petrol and 3 per cent of diesel to the New Zealand market.
AA petrol spokesman Mark Stockdale says Gull has made its opposition of regional fuel taxes more vocal than any other fuel company.
The Land Transport Management (Regional Fuel Tax) Amendment Bill would be heard for the third time in Parliament on Tuesday afternoon.
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The bill would allow councils to implement a fuel tax in their area, charging fuel companies who would collect it from motorists when they paid at the pump.
BP Oil New Zealand will pass the entire 11.5 cent fuel tax onto motorists.
Parliament went into urgency last week, allowing members to sit for extended hours, to pass it faster. Auckland Council will introduce the 10-year tax from July 1.
Bodger criticised the legislation on Monday. "[The regional fuel tax] appears to have been produced in a government vacuum. This could be a mess that business must tidy up following the hurried legislation."
The price of petrol before tax would not increase, but 11.5c was "one hell of a tax" and would be passed onto motorists in full, he said.
Mobil Oil New Zealand's select committee submission says a fuel tax will distort the fuel market.
BP Oil New Zealand spokeswoman Leigh Taylor confirmed it would pass the whole tax onto Auckland motorists at its 45 BP-owned and operated stations.
Z Energy refused to comment. Mobil Oil New Zealand was contacted for comment.
AA petrol spokesman Mark Stockdale said the fuel tax would be added to petrol prices on July 1.
Z Energy refused to comment on its stance on the regional fuel tax legislation.
It would be fair for fuel companies to initially round down the tax to charge motorists 11c at the pump and absorb the remaining 0.5c, he said.
Soon after July 1 it would become difficult for motorists to track how the tax affected petrol prices, he said. The tax would be added to fluctuating prices caused by changing commodity prices.
"You're not going to be able to see it."
Bodger said Gull would not wear the cost of the fuel tax in its own transport costs because its trucks delivered fuel from a terminal in Mount Maunganui and would fill up before and after entering Auckland.
He said the bill lacked industry input' however Gull, Z and Mobil had submitted their opinion on the bill to the Finance and Expenditure Select Committee. BP made a submission to the Ministry of Transport but would not release it to the media.
Bodger said most of Gull's submission was ignored.
Gull's submission said it opposed the new tax, which would not hurt its profits but was "an inefficient revenue gatherer and an imposition on commercial users of off road fuel".
Mobil's submission asked the Government to consider other options before a fuel tax.
A tax would distort the market, impact retailers and wholesalers and collect less revenue than was intended, its submission said.
Stockdale said all fuel companies were not enthusiastic about the tax, but Gull had been most vocal about its dislike for it, even before the bill was drafted.
When asked if any company that was forced to add a tax to its product would be unhappy, Stockdale said, "I guess so".
Most fuel companies were concerned about the practicality of the tax, rather than the extra cost they would have to charge consumers, he said.
- Stuff
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