The NRMA will carefully watch petrol prices in the Hunter and other regional areas to make sure service station operators do not use the federal government’s incoming fuel excise to unfairly raise petrol prices.
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Finance Minister Mathias Cormann announced yesterday that the twice-yearly indexation of tax on fuel would be reintroduced from November 10, even though it had not passed through the upper house.
The government will use a tariff proposal to introduce the excise without Senate approval.
But the excise will have to pass through the upper house within 12 months to remain legal.
While the fuel tax is expected to cost motorists an extra 40 cents a week, NRMA president Kyle Loades said some families could not afford the extra $21 a year.
He said the tax could cost motorists in regional areas such as Maitland more, because they had further distances to travel and fewer public transport options available.
“It was 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,” Mr Loades said.
“For families living in rural Australia, who use their car every day to drive long distances, the annual increase will cost a lot more.”
Mr Loades said the organisation would monitor service stations closely to make sure operators did not increase petrol prices unfairly, given that motorists would expect a price rise under the excise.
“The government needs to seriously reconsider this approach – there are fairer and more efficient ways to fund roads,” he said.
“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.
“The ACCC must also be out in force to ensure that there is no profiteering or price gouging as a result of this announcement.”
Opposition Leader Bill Shorten said the government’s move was “a sneak attack on the wallets and cost of living of every Australian”.
Senator Cormann said the excise would raise $19 billion in revenue over the next 10 years.