The Government’s decision to forge ahead with a biofuel mandate for fuel will only add to the rising cost of fuel, National’s Transport spokesperson Simeon Brown and Energy & Resources spokesperson Stuart Smith say.

“Advice from officials say that the Government’s proposed biofuel mandate will add between 5 and 10 cents a litre to the cost of fuel – which couldn’t come at a worse time for consumers,” Mr Brown says.

“The Government only recently responded to the cost of living crisis by reducing fuel excise 25c per litre temporarily and announced a temporary reduction in RUC rates. However, forging ahead with a biofuel mandate will only put that pressure back onto working families.

“This Labour Government is giving with one hand and taking with the other.

“Motorists already pay for the effects fuel has on the climate through the Emissions Trading Scheme, which adds approximately 19c to a litre of fuel.”

“Not only will this biofuel mandate increase fuel costs but it will mean consumers are paying twice for the effects fuel has on the climate,” Mr Smith says.

“While National is supportive of biofuels and reducing our carbon emissions, the Government cannot double dip into Kiwis’ pockets by taxing them through the ETS and the biofuel mandate.”

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