“International fuel prices have kept rising as a result of the ongoing conflict in Ukraine, and the sanctions imposed on Russia, third-largest oil producer in the world,” McNaught said in a statement.
Mobil spokesman Rob Fitzgerald said Mobil was seeking clarification from the Government about what exactly the reduction included.
A spokesman for BP said the fuel retailer was working on passing on the 25c cut across its network “in advance of midnight”.
Z was also working to make the change from midnight.
Z Energy chief executive Mike Bennetts said while the company was a commercial business, it was not looking to make additional profit from the 25c per litre reduction.
Until midnight, the Government collected about 70c a litre in fixed excise, and Auckland motorists paid an extra 10c a litre in Auckland for the Auckland Regional Fuel tax. Customers paid 15 per cent GST on top.
“This is a unique situation, and Z will ensure that our customers are receiving the benefits of the tax cut announced today,” Bennetts said.
Volatility in the price of refined fuels would continue given the ongoing war in Ukraine, he said.
The price of fuel across the country would continue to vary as Z’s fuel pricing was localised.
David Bodger, general manager at Gull, said its prices would drop by 29c. That would happen in two tranches at midnight and a half-hour afterwards, he said. The 29c included the 25c drop in excise tax, GST and “a bit more”, he said.
It had been waiting for confirmation from the minister that there would be a rebate for fuel that had already had excise paid, he said, and that had been received.
“It will make a huge difference,” he said. “If you do the maths, even if you are only buying 20 litres a week, that’s a lot, especially over a three-month period. And it should take the power out of the sails of inflation.”
ANZ economists agreed the temporary reduction in excise tax on fuel would have an effect on inflation. They estimated it could reduce Consumers Price Index inflation in the June quarter by about 5 percentage points, relative to a current forecast of 7.4 per cent year on year.
It would not change expectations of two 50-point hikes by the Reserve Bank, they said.
Extracted in full from: Mobil, Z, BP, Gull to drop petrol prices 25c a litre after Government fuel tax cut | Stuff.co.nz