Raising the fuel excise will slug Queenslanders the hardest as they travel further than people in other states, a motoring group says.
Queenslanders are set to be hit the hardest by any rise in the fuel excise because they travel further then people in other states, motorists say.
The federal government is believed to be considering a three cent increase in the 38.1 cents a litre excise that could bring in $1 billion in extra revenue a year.
Motoring group RACQ says raising the fuel tax will slug Queenslanders the hardest.
“To hit one of the biggest consumables that families pay for each week when living costs are so high is extremely disappointing,” spokesman Paul Turner told AAP.
“We’re a decentralised state so we’ll be hit harder because we travel further.
“The Queensland government and motorists should be very disappointed.”
Comment has been sought from the state government.
Mr Turner said it won’t be a one-off hit either because the excise would rise every six months with indexation.
“This is a hit they’ll be paying forever and ever,” he said.
Federal MP Bob Katter warned that the ethanol industry, seen as the future for canefarmers with sugar prices falling globally, would be wiped out.
“They are about to put the guillotine on the ethanol industry in Australia,” Katter told ABC Radio.
Gold Coast Tourism CEO Martin Winter said raising the fuel excise would hit the industry just when it was making some strong strides forward.
“Increasing the price of fuel is only going to discourage people to get in their cars and drive down to the Gold Coast for their weekends,” he said.
Queensland Treasurer Tim Nicholls said an excise hike would not be popular in his state.
“I would simply say that I don’t believe Queenslanders would be very comfortable with an increase in the petrol tax at the moment,” he told a Queensland Media Club lunch on Friday.