A growing number of motorists and rural users are pushing back against Road User Charges (RUCs), arguing the system is piling extra financial strain on top of already elevated diesel prices and broader cost-of-living pressures.
An online group, Stand Up to RUCs, which has around 1,400 members, says the government should consider temporarily easing or suspending RUCs to provide relief for freight operators, farmers, and other essential diesel users who rely heavily on transport.
Under the current system, diesel users pay RUCs based on distance travelled and vehicle weight, in addition to the cost of fuel itself. Critics argue this effectively creates a “double charge” on diesel users, while petrol drivers primarily pay excise tax at the pump.
RUCs currently work out to about $76 per 1,000 kilometres for many passenger vehicles, with penalties for non-compliance reaching $200 plus escalating fees for overdue payments.
AA fuel spokesperson Terry Collins said that even though diesel prices are high, claims that RUCs are unfair do not hold up.
“You’re paying a levy to update the roads you’re using. Hybrid vehicles have to do it, diesel have to do it, and ultimately in the future, petrol will have to do it when they move to move all the vehicle fleet over to road user charges.
“Is it unfair? No, it’s very fair. Has it come at a time when the diesel prices are high and it’s putting cost pressures on? Yes, but it doesn’t take away from what the road user charges are in place for and what they do.
“The problem is the price of diesel, not the road user charges. They weren’t complaining about the road user charges before this diesel went up; when the diesel was cheap, that was fine to pay.”
David Birkett, the arable chair at Federated Farmers, said it was understandable that people were frustrated about the high cost of diesel and other fuels.
“There is genuine concern that delivery of diesel to some smaller rural areas is behind schedule. Diesel demand on farms is relatively inelastic and so unavoidable – the crops still have to be brought in, feed taken out to animals, and produce taken to processors.
However, Birkett doesn’t think suspending road user charges as a form of protest really adds up. He points out that most diesel used on farms isn’t used on public roads, so it doesn’t attract RUC in the first place. As a result, any financial benefit for farmers would be pretty small.
“Any immediate relief of cost savings from suspending RUCs means there is less money for the government to spend on road and bridge maintenance and renewal longer term. Many rural roads and bridges are already in dire need of investment.
“Federated Farmers believes the best course is for farmers – and other diesel users – to do what they can to reduce / be more efficient with their use of the fuel. The fix for this situation is a clear return to normalcy in the supply and price of fuels upon which farming and so many other businesses depend.”