Gull to hold fuel prices until Wednesday despite new tax hitting on Sunday

New Zealanders will face a 3.5 cent increase in petrol prices on Sunday. Photo/File.

Gull is planning to give motorists a few extra days respite before adding a new fuel tax to its petrol prices.

This Sunday 30 September at 12am petrol prices nationwide will increase by 3.5 cents a litre as a new fuel excise tax comes into effect.

However, Gull will not be applying the tax immediately, opting to instead hold its prices until Wednesday.

"We plan to sell our existing fuel stocks at current prices until mid-next week," said Gull spokesman Rohan Mehta.

"This stock was bought prior to fuel excise tax increase and we think it's appropriate to pass on the pre-tax savings to our customers."

The latest tax follows the introduction of a regional fuel tax, which saw the price of fuel hike 11.5 cents in Auckland earlier this year.

In papers released to the Herald under the Official Information Act in June, Transport Minister Phil Twyford flagged increases of between 3c a litre and 4c for each of the next three years to fund transport plans such as light rail from the CBD to the airport.

The impact of these increases has seen the petrol price in some parts of the country creep over $2.40 per litre for 91.

"Lately, the country is witnessing record petrol prices ever recorded, and we are determined to offer some breathing space wherever possible," Mehta said.

"The fuel excise tax is inevitable, and we will be putting up our prices but that can wait until mid- next week."

Recently, there were long queues outside Gull service stations when the company decided to drop its fuel price 12 cents to $2.05 a litre for 91 between 7am on Thursday 20 September and 12pm on Friday 21 September.

Thereafter, Gull increased the price of 91 up to its current average of $2.17 per litre.