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What you need to know

Road users help pay for New Zealand’s land transport system through petrol excise duty (PED) or road user charges (RUC).

RUC is a distance charging system that applies to all vehicles using a motive power other than petrol. Owners of vehicles that don’t use petrol as their primary fuel, such as diesel cars, and heavy vehicles weighing over 3.5 tonnes, such as trucks, buses and some trailers, must pay RUC.

From 1 April 2024 electric vehicles and plug-in hybrid vehicles under 3.5 tonnes will start paying RUC. These vehicles are currently exempt from paying RUC.

Electric vehicles weighing over 3.5 tonnes, such as buses and trucks, are exempt from paying RUC until 31 December 2025.

Who pays RUC is set out in the Road User Charges Act. We consulted on potential changes to the RUC legislation in 2022. Read more about the road user charges consultation.

Our work at the Ministry covers policy, legislation and regulation, reviewing and setting RUC levels, and the system performance. We work closely with New Zealand Transport Agency Waka Kotahi to ensure that the RUC system is responsive to changes in the sector and Government priorities.

The work to date

08
Jan 2024

RUC exemption ends for electric vehicles

The Government announced that owners of light electric vehicles (EVs) and plug-in hybrid vehicles will start paying road user charges (RUC) when the current exemption expires at the close of 31 March 2024.

More information and related documents
07
Feb 2023

Extending fuel excise duty and public transport fares reductions, and reintroducing reduced rates of road user charges

FEB 2023 

Extending fuel excise duty and public transport fares reductions, and reintroducing reduced rates of road user charges 

In response to continued high fuel prices placing pressure on household budgets, the Government has announced an extension to the temporary transport support measures: 

  • Petrol excise duty remains at its current reduced rate of 45.02 cents per litre until 30 June 2023 
  • Reduced road user charges rates have been reintroduced and apply until 30 June 2023. All rates are reduced by 36 percent. You can contact Waka Kotahi with questions about individual rates. 
  • Public transport fares remain at half price until 30 June 2023. Community Connect (ongoing half-price public transport for community services cardholders) will commence on 1 July 2023 and half-price fares for Total Mobility users will continue indefinitely. 
06
Jan 2022–Apr 2023

Consultation on amending the road user charges system

Between January and April 2022 Te Manatū Waka sought feedback on possible changes to the road user charges system and support the uptake of low carbon vehicles. 

 

More information
05
Apr 2022–Jul 2022

Road user charges reduced between 21 April 2022 and 21 July 2022

04
Jul 2021

Road user charges exemption for light electric vehicles extended until 31 March 2024

03
Aug 2013–Dec 2016

Evaluations of the Road User Charges Act 2012 undertaken

Between 2013 and 2016, we commissioned Allen & Clarke to conduct evaluations of the Act in 3 stages.

More information and related documents
02
Aug 2012

Road User Charges Act 2012 came into force

The Act came into force on 1 August 2012, bringing about changes to how the RUC system worked and allowing the making of regulations to support the implementation of the legislation.

More information and related documents
01
Aug 2008–May 2009

Review group conducted independent review of RUC

The Road User Charges Review Group conducted an independent review of the RUC system and examined land transport cost allocations, options for improving the current RUC system and the merits of alternative methods of collecting revenue from diesel vehicles.

More information and related documents

Get in touch

info@transport.govt.nz