Aug 27, 2025
RNZ
Media
$200 extra to drive a RAV4: Will RUC changes help or hurt the climate?

"Driving around New Zealand on locally-made electrons should be cheaper than driving around New Zealand on foreign-sourced molecules." And with proposed changes to the Road User Charges system, which Mike Casey discussed with RNZ's Eloise Gibson, it will be.

We've been asked a lot of questions about changing to a system based on distance rather than paying fuel excise at the pump and our number crunching has shown that over three million petrol cars (including hybrids) will now pay more, while just a few big petrol cars will pay less. Electric vehicles were already paying RUCs, so this levels the playing field and make EVs the cheapest option - and much cheaper over their lifetime. In our policy manifesto we ranked this change as a 4/10 in terms of impact.

It’s important to remember that no fossil fuel car is efficient when you compare it to an electric one and this change creates a stronger economic signal to choose electrons over molecules when the time comes. We can't 'hybrid' our way to a zero emissions vehicle fleet, just as we can't 'efficiency' our way to a zero-emissions economy.

People should pay for the impact they have, so a large, heavy 4x4 should pay more for its impact on roads than a small hatchback, as should large trucks pay more than cars.

There are also plenty of external impacts on society from the emissions and other effects of vehicles that should be economically accounted for, too. And there is still time to design that in to this system.

Read our full statement here.

Read moreDownload the document here

More News