Petrol prices are expected to rise by half a cent per litre after the federal government announced plans to increase the fuel excise despite the move being blocked in the Senate.
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Finance Minister Mathias Cormann announced plans to raise the fuel excise from 38.14 cents per litre to 38.6 cents per litre next month through a "tariff proposal" which allows the government to raise taxes before they are legislated.
Federal Member for Hume Angus Taylor has welcomed the increase as a win for regional roads.
He said the average household consuming 50 litres of fuel a week should only be out of pocket "40 cents per week".
"While the impact on individual households will be slight, the revenue source will help boost investment in under-funded rural roads, like those in Hume Rural roads, as we know, desperately need that money," Mr Taylor said.
"The money raised, an estimated $2.2 billion over the forward estimates, will go straight back into road investment.
"That's the critical thing. What we want to see in rural areas and I know my constituents want to see is investment in those roads."
