Biggest overhaul of road funding in half a century on its way

From Nights, 8:10 pm on 6 August 2025

It's being described as the biggest change to how roading is funded in this country for fifty years.

The government intends to phase out fuel taxes and replace them with a uniform road user charge, or RUCs.

Transport Minister Chris Bishop made the announcement today -- saying petrol consumption is no longer an accurate measure of road usage, with the rise of fuel-efficient cars and e-vehicles.

Legislation is expected next year, with the new system where road users would pay their bill online, similar to a power bill in place by 2027.

Joining Emile Donovan to explain how it all works is economist Stuart Donovan a senior fellow at Motu Economic and Public Policy Research.

Hydrogen pump

Photo: Marika Khabazi