Regional fuel tax: already paying dividends

Author:
Auckland Council Chief Economist, David Norman
Source:
Auckland Council Chief Economist
Publication date:
2019
  • There has been an uptick in growth in public transport (PT) use since July 2018.
  • Two significant events affected demand for PT in July – a change to the bus network, and the introduction of the Regional Fuel Tax (RFT).
  • Growth in public transport in August and September 2018, compared with the same period a year earlier, suggests the strongest growth has been in the more distant reaches of the city, exactly where you would expect it to be highest given the impact of the RFT on the attractiveness of driving.
  • While the RFT was introduced primarily to fund much-needed transport improvements, stimulating PT uptake is one of its key side benefits, and one it is already delivering upon.

PT patronage in Auckland has been growing for years, but at a sharper rate since July 2018. In fact, in the eight months since the end of June, annual patronage in Auckland is up 8.9% compared to the same eight months a year earlier.

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Last updated: 2019-04-11

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