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Petrol prices will rise next month after the federal government announced plans to increase the tax on fuel despite not having parliamentary approval for the measure. And the government is daring Labor and the Greens to continue blocking the move, warning that the taxes paid by motorists would be refunded to the big oil companies and not the motorists. Finance Minister Mathias Cormann announced on Tuesday that the fuel excise would be raised from November 10. A majority in the Senate oppose an increase in fuel excise. He said the government would increase the tax through a "tariff proposal" which allows the government to raise taxes before they are legislated. Senator Cormann said the tactic was used by the former Labor government in 2008 when it announced a higher tax on "alcopops". He said the effect on petrol prices would be "modest". "But the impact on our capacity to build a stronger more prosperous economy will be significant," the Minister told reporters in Canberra "Your typical household, using about 50 litres of fuel a week, will only pay about 40 cents a week more for their fuel," he said. It is expected to raise the government $2.2 billion over four years. From 10 November, the rate of fuel duty will increase from 38.143 cents per litre to 38.6 cents per litre. Labor, the Greens and the Palmer United Party are opposed to increasing the tax on petrol and the government has not attempted to introduce the measure into the Senate because it would be defeated. Opposition Leader Bill Shorten said the move was an "outrageous" attempt to bypass the Parliament. "Tony Abbott yesterday says he wants a mature debate and yet today, he ambushes Australian motorists, ambushes the Parliament of Australia and through the back door has launched a sneak attack on the wallets and cost of living of every Australian." The tariff proposals will be tabled in the House of Representatives this week. Parliament will be given 12 months to validate the increased fuel tax. Senator Cormann said he was confident of Parliament passing the bills within a year and warned that if it failed, the revenue would be returned to the oil giants and not motorists. "It will go back to fuel manufactures and to fuel importers who would essentially have a windfall gain at that time," he said. "There's no obligation on those fuel importers or fuel manufacturers to remit that money to users." Andrew McKellar from the Australian Automobile Association said the government's tactics were "completely unacceptable". "It'll be motorists that are paying the tax and if they cannot pass their legislation then that money has to go back to motorists, so they need to find a way to guarantee motorists," he said. The government broke its pre-election promise not to introduce new taxes in the May budget, when it unveiled plans to increase taxes on the rich and the fuel excise. The fuel excise increase was due to come into effect on 1 August this year. The three-month delay will cost the government $35 million in lost revenue. In May, the government forecast the measure would raise $2.2 billion over four years and $19 billion over the next decade. SMH

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