Petrol cars are eventually joining RUC. The petrol tax at the pump will go away, replaced by distance-based charges like diesel and EVs already pay. The system's getting a digital upgrade first. No more paper labels. Target is 2027 for the new system, but the exact date for petrol vehicles is still TBC.
The petrol tax worked great when everyone drove petrol cars that all used roughly the same fuel. But that world is disappearing.
In 2015, NZ had about 12,000 petrol-electric hybrids. By 2025, that number hit 350,000+. These vehicles use the same roads but contribute far less through petrol tax.
This is the core equity problem the transition is designed to fix.
These decisions are locked in. Cabinet has agreed, or legislation is already in place.
Since April 2024, light EVs pay $76/1,000km and PHEVs pay $38/1,000km
The end goal is complete removal of fuel excise duty at the pump
No more windscreen stickers. Digital records will be the proof of compliance
Private companies will compete to sell RUC, not just the government
Monthly billing, subscriptions, post-pay. Not just 1,000km blocks upfront
Your car's built-in systems may count as your distance recorder. No extra hardware needed
The government has been clear these are still open questions. Decisions will come as the system matures.
System opens 2027, but when petrol cars must join is still TBC. Could be phased or big bang.
Will it be the same $76 as EVs? Or different? Rates will be set closer to implementation.
Can private RUC Providers charge whatever they want, or will government regulate margins?
What happens if you don't choose a provider? Who's the default option?
Will there be help for low-income households who might struggle with periodic RUC bills?
Will all 3.5 million petrol vehicles join at once, or gradually by age/region/weight?
Light EVs and PHEVs enter RUC system
Minister announces petrol transition plans
Land Transport (Revenue) Amendment Bill introduced
Public submissions close
RFI for new RUC systems closes
Select Committee reports back
Bill expected to pass
Modernised system opens for business
Heavy EVs join RUC
Petrol vehicles mandated to join
The Land Transport (Revenue) Amendment Bill is the key piece of law that enables all of this. Here's what it does:
No more mandatory windscreen stickers. Compliance moves to digital records.
Private companies can sell RUC, collect payments, and offer flexible plans.
Any approved tech can be a distance recorder. In-car systems, apps, whatever works.
Registered person (not driver) becomes liable for tolls and charges. Simpler for fleets.
Policy and strategy
Sets the direction, writes the legislation, runs consultations
Regulation and systems
The RUC Collector. Manages the database, approves providers, monitors compliance
Enforcement
Roadside checks via digital plate lookups
Legislation
Passes the laws, takes public submissions via Select Committee
Nothing changes yet
Keep paying at the pump as normal. The transition date hasn't been set.
When it happens, petrol tax goes away
Fuel will be cheaper at the pump. You'll pay RUC separately instead.
It should be simpler than current RUC
No paper labels. Automatic top-ups. Maybe monthly billing. The goal is "set and forget."
You'll choose a provider
Like choosing a power company. Different providers, different plans, same core service.
This is a multi-year transition. The rules will evolve as the legislation passes and the market develops. We'll update this guide as things become clearer. For now, diesel and EV owners are already in the system. Petrol owners: watch this space.
