Fuel prices delay emissions scheme 

Motorists struggling with skyrocketing petrol prices can breathe a little easier.
  
The government has confirmed it is delaying the introduction of a new petrol charge that would have added eight cents to every litre in 2009. The change is being pushed back to 2011.

The government says the proposed extra charge under the Emissions Trading Scheme isn't required as a deterrent right now.

Prime Minister Helen Clark says petrol prices have soared by more than 20% in the past year and because of that, petrol consumption is down as people choose to use less.

"In effect the high price of fuel now is doing what the emissions trading scheme would have done," says Clark.

Under the Kyoto Protocol, New Zealand has pledged by 2012 to reduce greenhouse gas emissions back to the level they were in 1990, but if that target is not met New Zealand will be penalised.

Kyoto rules say New Zealand has to buy carbon credits from countries which have stayed under their pollution limits. Because of New Zealand's failings in reducing its emissions, our bill was estimated on Monday to be $1 billion.

But less petrol use means lower emissions and a lower bill under the Kyoto Protocol.

Estimates released on Tuesday show that the bill has halved to about $480 million.

Clark is also softening her approach on Climate Change Policy by looking to ease the burden of looming pollution taxes for businesses.

"We (the government) can take this opportunity to ease the burden on households and business," Clark reassures.

Under the initial scheme businesses with a key trade role were going to get carbon credits free for five years and then gradually they would start paying for the pollution they created.  

However, now they will get a free ride for longer.