The Government will increase petrol tax by three cents a litre each July 1 for the next three years.

Transport Minister Gerry Brownlee said road user charges would also be increased by an equivalent amount.

He said the increases were required to deliver the "Roads of National Significance" programme and other roading projects to the timeline set out in the Government's land transport funding policy.

"Excise increases in recent years have helped maintain the real value of the Land Transport Fund. These latest increases will also achieve that, and allow for continuing investment in the Government's state highway building programme and other transport projects,'' Brownlee said.


In particular, the extra money would allow work to begin on the Rangiriri and Tamahere-Cambridge sections of the Waikato Expressway, the Mackays to Peka Peka section of the Wellington Northern Corridor, and the four-laning of the Groynes to Sawyers Arm section of the Western Corridor in Christchurch.

"We have considered innovative ways to deliver the RONS [Roads of National Significance] programme, agreeing to the procurement of Wellington's Transmission Gully project through a public-private partnership and asking the NZ Transport Agency (NZTA) to investigate tolling the route.''

NZTA chief executive Geoff Dangerfield said the certainty provided by the increased funding had allowed the NZTA board to approve construction funding for projects.

"The certainty that this guaranteed funding stream provides means we can proceed with confidence in developing and delivering these and other major projects which will enable economic growth and provide safer journeys for New Zealanders.''