RUC shock: the future of pay‑per‑kilometre driving

RUC shock: the future of pay‑per‑kilometre driving

April 1, 2026 · 43 min · Season 4 · Episode 143

About this episode

The episode discusses the upcoming changes to New Zealand's road user charge system and its implications for drivers.

New Zealand drivers are about to discover a whole new way of paying to use the roads – and for most, it will be a shock.  For decades, petrol and diesel motorists have funded the transport network through fuel excise quietly folded into every litre at the pump - currently a 70c tax.  Soon, that largely invisible tax will give way to something much more visible – paying per kilometre under an expanded road user charge (RUC) system. On the latest episode of The Business of Tech, I talk to Dunedin-based entrepreneur Adam Johnston about what may be the biggest shake-up to transport funding in 50 years. Light vehicle owners who have never had to think about RUC before will be pulled into a regime that currently applies to heavy vehicles, diesel cars and electric vehicles. Petrol vehicles currently make up around 55% of the national fleet. Instead of passively paying when you fill up, you’ll be actively buying distance in advance, tracking your odometer, and keeping on the good side of Waka Kotahi. A new marketplace for RUC payments   That sounds like a recipe for confusion and admin overload, especially in a cost-of-living crisis where drivers are…

People in this episode

Host: BusinessDesk

Guest: Adam Johnston

Topics covered

Keywords

Mentioned in this episode

Organizations: Waka Kotahi

Places: New Zealand, Dunedin

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