Rikkitic:
Reciprocity:
I was gonna say, “let’s not get carried away”
But this government has given us a 42% increase in petrol prices in less than a year, so anything is possible!
I try to avoid getting into the details of discussions like this because every time I do, they turn out to be incorrectly or selectively cited or presented in a manner to support a particular political argument. Wading through the figures is time-consuming and tiring and I frankly don’t have the patience or energy for it anymore, especially when the truth always turns out to be something else. But I got curious about the petrol price issue and decided to take a slightly closer look. Here is what I found on the AA site alone:
Thanks to this government (I haven’t seen anyone here giving them credit), ALL revenue from petrol taxes will now be devoted to the road and transport system. I would think this would warm the hearts of the National-voting motoring crowd. Under National, by the way, only about a third of petrol tax revenue went back into roading.
The price of fuel is a direct result of the international price of oil, which no NZ government can do much about. On top of that is the exchange rate difference since oil is priced in US dollars. A year ago a dollar was worth about US 80 cents. Right now that is around US 74 cents. This also means higher pump prices. Maybe some exchange rate difference can be blamed on government policy, but that is a stretch.
Mostly what you say their is fair - can hardly attribute all of the increases to the government. But like it or not they have increased fuel taxes, so no hiding from that fact.
However, government policy and actions have a very strong impact on the exchange rate - reduced business confidence and poor growth (which we had seen prior to the latest GDP results) will keep interest rates low which in turn has a direct impact on exchange rates in crude terms. Furthermore, when jacinda made her infamous GDP botch-up the dollar jumped. So, even if inadvertently, yes the government does have an impact on the exchange rate. However, conversely, a low exchange rate is good for exports, so that can't be ignored.
Much can be made of the government putting all fuel taxes into roading - I haven't been able to find any meaningful data on this scenario, but I find it hard to believe that this will have any tangible benefit, in that I would have thought that even if the government had put all fuel tax into roading, it would still have had to be topped up with other revenue anyway, but as i say, without any data I can't verify that.




