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Why does diesel cost much less in New Zealand than Australia?

April 26, 2017Australia COST diesel new zealand

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Why does diesel cost much less in New Zealand than Australia?

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The level of tax applied to fuel is one of the biggest determinates of differences in retail prices between countries. Australia has the fourth cheapest diesel pre tax of OECD countries, post tax it is the sixth cheapest. Pre tax the price of diesel is similar in Australia and New Zealand, but due to the low New Zealand diesel tax rate, diesel is cheaper in New Zealand post tax.