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American Focus > Blog > World News > Will axing petrol tax be a game-changer?
World News

Will axing petrol tax be a game-changer?

Last updated: August 12, 2025 11:45 am
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Will axing petrol tax be a game-changer?
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Revolutionizing the Way We Fund Transportation: A Proposal for Change

Transportation is a fundamental aspect of modern society, but the current system is riddled with inequalities and health hazards. Some individuals travel excessively, causing harm to both people and the environment through pollution, injury risks, and physical inactivity. On the other hand, many cannot afford to travel as much, leading to missed opportunities and financial strain.

The recent announcement by Transport Minister Chris Bishop to replace fuel excise duty with electronic road user charges presents an opportunity to overhaul the way we finance our transportation system. This shift could better reflect the true costs associated with road usage and benefit both individuals and the planet.

Bishop’s rationale behind the proposal is to ensure fairness in contribution towards road maintenance, acknowledging that those who drive less or cannot afford fuel-efficient vehicles should not be disproportionately burdened. However, the proposal falls short in considering the broader societal costs of driving, such as health impacts and environmental damage.

A more comprehensive pricing structure could account for the various impacts of different vehicle types, including their contribution to injuries, pollution, and congestion. By incorporating these factors into the pricing model, we can create a more equitable and sustainable system that incentivizes responsible driving behavior.

While the implementation of road user charges may lead to increased costs for some individuals, particularly those with limited alternatives, it is essential to offset these expenses through investments in public transport, cycling infrastructure, and urban planning. By providing viable alternatives to driving and reducing the overall need for travel, we can mitigate the financial burdens on vulnerable populations.

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Ultimately, this proposed change in funding for our transportation system offers a unique opportunity to reshape our approach to mobility. By leveraging the revenue generated from road user charges to promote sustainable travel options, we can create a fairer and healthier transport environment for all.

As Dr. Angela Curl and Caroline Shaw aptly point out, this policy has the potential to be truly transformative if implemented thoughtfully. It is time to rethink how we finance our transport system and prioritize the well-being of both individuals and the planet.

• Dr Angela Curl is a senior lecturer in the University of Otago department of population health, Christchurch; Caroline Shaw is a lecturer and researcher in the department of public health, University of Otago, Wellington.

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