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FED:Fuel costs to creep up as states back excise return

Drivers will pay $10 more to fill a 65-litre tank of fuel when tax relief designed to combat surging fuel prices begins to wind back.

The move comes after a volley of dire warnings grocery and transport costs would spike and holiday-makers would stay home if the discounted fuel excise returned in full.

The tax will begin to creep back onto prices at the servo from July 1.

On the same date, truckers will also have to fork out 16 cents per litre on top of the returning excise when the heavy vehicle road user charge makes a partial return.

That translates to $64 more for a 400-litre fuel tank.

Previously set to expire at the end of June, the tax breaks are now being wiped away in increments as part of a plan hatched by the federal government and endorsed by state premiers at a national cabinet meeting on Monday.

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