If you’ve been weighing up whether an EV is right for you, you might have heard that road user charges (RUC) now apply to electric vehicles. And yes, that is correct. But that does not mean the dream of cheaper, cleaner driving is over. In fact, once you look at the numbers, you will see things are still looking pretty bright.

Let's explore who has to pay road user charges, and how much owners of diesel powered vehicles, plug in hybrid vehicles, and electric vehicles should budget.

What are road user charges, and why do EVs pay them?

In New Zealand, owners of petrol cars pay for roading infrastructure and upkeep through the fuel excise duty that is built into the price of petrol. But since battery powered EVs do not use fuel, electric vehicle drivers do not pay the fuel excise tax. RUC is simply another way of covering the same cost, ensuring that drivers of heavy vehicles, light vehicles, and hybrid petrol vehicles pay their share, albeit in a slightly different manner.

Since April 2024, most light electric vehicles now require a RUC licence. If you have driven a diesel vehicle before and had to pay road user charges, the process is the same for other vehicles like plug-in hybrids and EVs.

How much are we talking?

RUC are a distance based system where you pay in advance per 1000km. Most EV owners will pay $76 per 1,000 kilometres. Plug-in petrol hybrids pay less at $38 per 1,000 kilometres, since they already contribute some fuel tax at the pump.

You buy RUC in chunks of 1,000 kilometres. It is quick and easy to do online, or you can visit a local agent if that suits you better. There is a small admin fee each time you buy a licence. That is $12.44 online or $13.71 in person.

If you drive around 11,500 kilometres a year, you are looking at about $874 in RUC. Compare that to the average $1,600 spent annually on petrol, and an EV is still substantially cheaper, especially when you factor in how affordable it is to charge at home overnight during off peak hours, and how cheap commercial chargers are for the majority of EV owners.

Which EVs need to pay RUC?

It depends on your vehicle’s weight (as specified by the manufacturer's gross vehicle mass) and how it is powered. Here is a quick overview of what the RUC rates are for different vehicle types:

  • Battery electric vehicles (BEVs) run solely on electricity and pay $76 per 1,000 kilometres.

  • Plug-in petrol hybrids pay $38 per 1,000 kilometres, since they also use petrol.

  • Plug-in diesel hybrids pay the full $76 per 1,000 kilometres.

  • Non-plug-in petrol hybrids do not need RUC, as they already pay fuel tax.

  • Non-plug-in diesel hybrids already pay RUC and continue to do so.

  • Very light electric vehicles, such as electric scooters, mopeds or electric motorcycles under 1,000 kilograms, do not need to pay RUC.

What do you need to buy a RUC licence?

You will need your vehicle's plate number, current odometer reading, and a way to pay. Once purchased, your licence must be displayed on your windscreen. You can buy it online in a few minutes, or head to a RUC agent if that is easier for you.

So, is driving electric still worth it?

We think so. Even with RUC added to the picture, the cost of EV ownership still works out cheaper for most people. Although the repeal of financial incentives like the Clean Car Discount may have hurt EV uptake, and the recent addition of RUC might sting, New Zealand EV owners are also saving on maintenance, since EVs have fewer moving parts and skip the usual costs like oil changes and exhaust repairs. The benefits are still very real, both for your wallet and for the environment, and will only become greater as New Zealand's light vehicle fleet continues to electrify.

Start Your EV Journey with Only Cars NZ

If you are ready to make the switch to electric or just want to explore your options, take a look at our electric cars for sale today and embrace the future of driving with Only Cars NZ. But if you're happy keeping things traditional, that's fine too! With an extensive range of new cars for sale and used cars for sale, we make it easy to buy a car online, whatever your budget or style.