Government set to raise fuel tax

The Federal government is set to raise fuel excise with an announcement likely in the Budget later this week. This has attracted widespread criticism, with the Australian Automobile Association (AAA) in particular slamming the idea.

While the decision to raise the fuel excise is reportedly in order to reduce the current high deficit in the books, AAA Chief Executive Andrew McKellar believes any rise to the current rate would be unfair for all motorists.

"Any increase in fuel excise in this Budget would be unjustified," he said.

"The government must be honest with motorists and confirm that there will be no increase in fuel tax."

During the last election, the Abbott government did not mention any details regarding a possible lift to the levy, Mr McKellar said, which has held at 38.1 cents since 2001.

"Motorists already pay too much tax and are not getting fair value for money with only a fraction of fuel excise being returned to spending on transport infrastructure by the Federal Government," he said. 

It is not known how much the excise will be or how long it could be in place, but the possible lift could put additional pressure on inflation, Queensland Liberal National MP Ken O'Dowd told the ABC.

"We already pay a pretty high price for our fuel in Australia as it is. This will anger the people to a certain degree. Anything over one or two cents you'll get a reaction from the public," he said.

For fleet managers concerned about how the fuel levy will impact their business' running costs, they should invest in fleet management software.

The software can manage your fleet's fuel consumption and monitor all vehicles and drivers so you know you fleet is running at its peak and at the lowest price possible.