More taxes, subsidies needed to meet electric vehicle goals - economist

  • Jul 29, 2021
  • News Hub

One of New Zealand's biggest petrol retailers doesn't think the country is going to make the switch to electric vehicles (EVs) as quickly as a recent Government report suggests.

The Climate Change Commission's (CCC) report Ināia tonu nei: A low emissions future for Aotearoa, released in June, says electrifying the country's 4.5 million road vehicles is "a critical element" of reaching New Zealand's net-zero emissions goal by 2050.

It recommended stopping the import of new combustion engine cars by 2032, and used by 2035 - at the latest.

But Z Energy says it expects demand for petrol to stay strong well beyond then. In a report released on Wednesday, the company said it expects uptake of EVs to be slower than the Government would like, and price parity to take longer to reach. EVs currently cost an average $16,000 more than traditional vehicles, according to the report - and that's before taxes like GST.

"Our view is that although annual growth in petrol and diesel demand will slow markedly from 2025 and turn negative from 2026 for petrol and 2028 for diesel, it will not reduce as quickly as the CCC predicts," Z Energy's report said.

"We see demand for both fuels remaining substantially higher than the commission does out to 2040."