Following on from retail petrol cracking the $1.50 a litre barrier at New Zealand pumps yesterday Warren Ruscoe today added his support to the Auckland Chamber of Commerce in line with escalating petrol prices and stated that “The cost to New Zealanders will not stop at the service station, businesses had to take the price rises into account. “

Warren Ruscoe said “The rises in petrol prices are also rapidly adding to the Government's tax take, putting millions of dollars more into its coffers every month. The 12.5 per cent GST component of petrol is now about 17c a litre, compared with about 13c when petrol cost 116c a litre six months ago.”

“We contacted the Automobile Association last week and discovered that other taxes besides GST totalled .47c per litre. The really annoying thing about this is petrol at the pump is effectively sold to the end user with a tax on a tax which we are now saying needs serious reconsidering.

“The Tax on The Tax for a litre of Petrol comes to .6c” (47c X12.5%)

“New Zealanders now have to consider modifying their use of petroleum products and their spending habits. “

The Government should take a "fairly urgent" look at lifting the 5c a litre surcharge imposed in April to boost transport spending, he said.