Owners of plug-in hybrid cars, such as the popular Outlander plug-in, will pay less in road user charges due to a decision by the government. Transport Minister Simeon Brown announced that owners of these vehicles will pay $38 per 1000km driven for road maintenance. These vehicles can be charged from mains power like an electric car, but can also use fuel.
Previously, owners of plug-in hybrids argued that they would pay more than others because they used both electric batteries and petrol. This was especially true for older vehicles with less battery power. Initially, Brown proposed a rate of $53 per 1000km, a 30% discount on what a diesel vehicle would pay. However, after feedback, Labour and the Greens suggested lowering the fee to $38.
The committee unanimously approved this change, which the government had not planned. The government’s decision means the lower rate will be applied when the law is passed. Brown acknowledged that without a reduced rate, owners of these vehicles would have to pay a full road user charge and claim back any petrol tax paid, which could be difficult and open to fraud.
The reduced rate is temporary, with broader changes planned to include all vehicles in the road user charges scheme instead of paying petrol excise tax. Labour leader Chris Hipkins and Labour’s Transport spokesperson Tangi Utikere applauded the decision, calling it a win for owners of plug-in hybrids and the environment.
