Fuel excise rise ‘hit to agriculture’ - Capricornia MP

MICHELLE Landry says workers in Capricornia's agriculture and mining sectors will feel the most pain at the petrol pump if the fuel excise is raised in tonight's Federal Budget.

The Member for Capricornia said she did not want to see the touted increase happen but realised that drastic measures had to be taken to address the country's spiralling debt.

She said while it would have only a minimal impact on motorists day-to-day, those travelling long distances would be hardest hit.

It is understood the Federal Government will move to increase the fuel excise by inflation twice a year. The excise had been frozen at 38.1cents since 2001.

Meanwhile, the RACQ has called on the Federal Government to guarantee that at least half of all current and future funding raised by the fuel excise will be spent on road infrastructure.

RACQ executive general manager advocacy Paul Turner said the return to a six-monthly indexation would add billions to the budget bottom line and cost motorists hundreds of dollars in the years ahead.

"Motorists need to get their fair share," he said.

"The least the Federal Government could do... is to make sure at least half of it comes back in better and safer roads," he said.

Topics:  federal budget 2014 fuel michelle landry

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