The raising of the fuel excise to cost motorists $20 more per year
The raising of the fuel excise to cost motorists $20 more per year Brenda Strong

NRMA says government fuel increase to cost families

THE NRMA has questioned the logic behind the Federal Government's new fuel tariffs that will cost the average family about $20 a year more for petrol.

Finance Minister Mathias Cormann announced the price rise would take effect from November 10 and create $2.2 billion for roads and job creation.

But it still needs approval - something the Senate has refused to give.

All money raised from the tax will be returned to fuel companies if the Senate does not give it the green light within 12 months.

NRMA president Kyle Loades said that could lead to a mass appeal for refunds from everyday drivers.

"It is clear that the government was not going to get fuel indexation passed in the Senate, and we're not surprised - it was a bad policy that would hurt Australian families," he said.

"While the government might argue that indexation will only cost an additional 40c per week, that's an extra $20 a year that many families can't afford and it will continue to increase twice a year indefinitely.

"We also question the logic behind this approach if every driver in the country will then be handing in receipts in 12 months time to claim their money back.

"The government must guarantee that if this measure is defeated in the parliament in 12 months time that all money collected from motorists will be refunded."

Jim Pearson Transport owner Jim Pearson said the trucking industry would have to come to terms with the price hike.
He said it was just one of many growing costs business owners faced on a daily basis.

"We pass on all those price rises in the end - with the amount of fuel we use, we have to," he said.

"Fuel fluctuates all the time. It's about 10c a litre cheaper now than it was last month.

"Every year we have increases in everything - the cost of trucks, wage increases.

"If you don't have some sort of mechanism in your business to pass that on, you're really in trouble."