Regional Fuel Tax: Hundreds paying levy for fuel to heat homes

The Regional Fuel Tax was designed to fund congestion-busting projects - not increase the cost of home heating. Photo / Brett Phibbs

Hundreds of Auckland households are paying extra to heat their homes because of an oversight in the creation of the Regional Fuel Tax.

People in 500-600 properties with diesel-powered heating systems are paying the 11.5c a litre levy designed to boost spending for transport projects.

Each home has a 200-500 litre tank filled around twice each winter, according to Ministry of Transport estimates. Those affected pay tax of $46-$115 a year.

Transport Minister Phil Twyford said the issue was brought to his attention by two Auckland homeowners in July.

They were "concerned about the impact on their power costs, and rightly so".

Twyford instructed his ministry to address the situation as part of a wider review due for completion by the end of June 2019.

He's asked officials to see if those affected could apply for rebates backdated to July 1, when the tax was introduced.