The impacts of petrol price changes on petrol consumption, traffic volume and public transport patronage in New Zealand are discussed. Based on this evidence and that from Australia and other countries, a set of ‘best estimate’ petrol price elasticities for the New Zealand context, of –0.15 for the short run and of –0.20 for the medium run, are recommended.
Transport fuel prices in New Zealand (as in other countries) have varied quite dramatically over the last five years. Knowledge of the likely market responses to fuel price changes is important for transport forecasting applications, such as those for:
Applications and implications of the impacts of petrol price changes on modelling, policy making and further research are made.