Hot-headed and Cooler-headed Fuel Price Arguments : What are the Real Issues at Stake?

 "Of the 40 cents a litre increase in petrol prices over recent weeks, about 30 cents of that has been due to a combination of rising crude oil prices internationally and a weaker exchange rate (which makes imports dearer). The remainder has been adjustments in retailer margins, changes in discounts and an increase in taxes of about 9 cents." -- Eaqub.
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pn129

Jacinda Adern said petrol prices had increased by 38c in the year ending 28th September, of which 6.8c was for the Emissions Trading Levy and GST. These figures were provided by the Ministry of Business, Innovation and Employment (MBIE) and were also used by the Automobile Association to show that tax was not the major factor in the increased petrol tax. (See my posting pn121).


Government opponents, including "hot head"  Cameron Slater, immediately  attacked these figures because they did not include the 3.5c excise tax and the 10c Auckland Regional Fuel Tax that came in two days later, on September 30th. Mike Hosking said the increase was mainly due to taxes — which it wasn't. (Use "Search the blog" for "pn127".) 

We look at these views and then at those with "cooler" heads.