Motorists face increased petrol costs as cabinet searches for budget savings

Motorists could soon be paying an extra three cents a litre for petrol as the federal cabinet considers increasing the petrol excise to find budget savings.

petrol_pump_getty.jpg

(File: Getty)

The Abbott government is believed to be preparing to increase the fuel excise to 41.1 cents per litre in next week's budget.

If the Coalition goes ahead with the rise, it could secure an extra billion dollars in revenue a year.

The excise has been locked at 38.1 cents since the Howard coalition government froze automatic indexation in 2001.

If it goes ahead, the rise will come on top of mooted plans by the coalition to impose a debt levy on higher income earners, most likely those on more than $150,000 a year.

Assistant Infrastructure Minister Jamie Briggs has refused to confirm if motorists will be asked to pay more in fuel excise to fund it.

Mr Briggs says motorists will see enormous benefits in the budget from the programs the government will put in place.
 
"There will be projects across the country to ensure we are building the infrastructure which supports the economy we want to have," Mr Briggs told reporters in Adelaide.

"But I'm not the treasurer and the treasurer will rule in or rule out (increased fuel excise) next Tuesday night."

The Australian Greens say the government should be targeting the diesel fuel rebate that gives the mining industry billions of dollars in exemptions, instead of everyday motorists.


Share

2 min read

Published

Updated

Source: AAP


Share this with family and friends


Get SBS News daily and direct to your Inbox

Sign up now for the latest news from Australia and around the world direct to your inbox.

By subscribing, you agree to SBS’s terms of service and privacy policy including receiving email updates from SBS.

Download our apps
SBS News
SBS Audio
SBS On Demand

Listen to our podcasts
An overview of the day's top stories from SBS News
Interviews and feature reports from SBS News
Your daily ten minute finance and business news wrap with SBS Finance Editor Ricardo Gonçalves.
A daily five minute news wrap for English learners and people with disability
Get the latest with our News podcasts on your favourite podcast apps.

Watch on SBS
SBS World News

SBS World News

Take a global view with Australia's most comprehensive world news service
Watch the latest news videos from Australia and across the world