UNDER THE PUMP: Yaamba grazier Neil Farmer fills up his dual-cab Hilux ute ahead of last night’s budget announcement of the re-introduction of a fuel excise indexation.
UNDER THE PUMP: Yaamba grazier Neil Farmer fills up his dual-cab Hilux ute ahead of last night’s budget announcement of the re-introduction of a fuel excise indexation. Kara Paradies

Fuel excise small price to pay to repair economy - grazier

JUST one cup of coffee a week.

That's the sacrifice Yaamba grazier Neil Farmer says he will have to make after Treasurer Joe Hockey announced the re-introduction of the fuel excise indexation last night.

Neil said it was a small price to pay for the "bigger picture".

The fuel excise has been locked at 38.1 cents a litre since the Coalition abolished the indexation in 2001.

But the biannual indexation will be re-introduced from August 1 this year.

In his budget speech last night, Mr Hockey said every dollar raised by the increases would be spent on roads.

"This will ensure that there is a stable and growing source of funds to support long-term investment in Australia's roads," he said.

Neil, whose wife Clare travels to and from Rockhampton five days a week for work, said he wasn't worried about fuel prices going up.

"In the big picture it's only one small point to consider," he said.

"It's insignificant compared to everything else."

Neil said he and his wife spend on average about $220 a week on fuel.

He said the increase was likely to only be a few cents.

The ABC has previously reported the indexation could raise up to $340 million in the first year.