The Finance Minister has rejected calls to cut road user charges as a way to ease the impact of a recent jump in diesel prices, saying the government will not change the tax arrangement for diesel users despite pressure from households and businesses.
What the minister said
Nicola Willis, speaking to the press on Tuesday, acknowledged the hardship caused by higher diesel costs but confirmed there are no plans to lower RUCs. She said, "We've chosen not to take that measure," adding that cutting the charge would not be "temporary, timely, or targeted." The minister argued such a move could disproportionately benefit higher-income and heavy fuel users and might conflict with efforts to discourage excessive fuel consumption.
Willis also expressed empathy for drivers who rely on diesel, saying, "I have deep sympathy for diesel users because diesel is the fuel globally that has been most disrupted by the Middle East conflict." She said the government is focusing support on low-income families with young children and is prepared to consider other forms of assistance if they are judged to be appropriate.
Why RUCs were singled out
Diesel in recent days has risen to roughly the same pump price as 91 unleaded petrol, making the combined cost of diesel plus RUCs notably higher than operating a petrol vehicle. Unlike petrol, where excise tax is collected at the pump, diesel users meet the tax obligation through road user charges, creating different price dynamics when wholesale fuel costs move rapidly.
Willis framed the decision as one about fairness and the principle that users should contribute to road maintenance. She noted there are different mechanisms for collecting tax from petrol and diesel users, and that offering a diesel-specific cut could prompt petrol users to demand equivalent relief.
Who is affected and what comes next
Higher diesel prices are affecting households, contractors, farm operators, and other businesses that depend on diesel-powered vehicles. Willis said she hears their concerns "loudly" and that the government will prioritise ensuring diesel supply and engage with international efforts aimed at stabilising global diesel prices.
