The price rise is the result of the Australian government reintroducing petrol indexation in its 2014 May budget.

Under the tax, the price of petrol is likely to increase twice a year, every year, in line with inflation.

National Roads and Motoring Association (NRMA) spokesman Peter Khoury said once Saturday’s increase takes place, petrol will have risen by about one cent per litre since the indexation was introduced last year.

It is estimated it will add an additional 20 cents per litre to the bowser price within 10 years.

“It’s going to mean higher petrol prices in particular for Orange because people in regional areas like Orange have to travel longer distances,” Mr Khoury said.

“We were very disappointed when the federal opposition announced this year that they would support it.”

Mr Khoury said people in regional areas generally had to travel further for  work, schools and services, so would be hit harder by petrol price increases.

NRMA director Fiona Simson said had the NRMA not fought to cap indexation in 2000, after it was abolished in 2009 to offset the introduction of the GST, petrol prices would be 20 cents higher. 

“That means that instead of Orange motorists paying an average of 141.2 cents as they do today [week ending July 26], they would be paying upwards of 161.2 cents a litre for an essential household commodity,” Ms Simson said.

“Motorists have been hit with a double tax whammy, they already pay GST on top of the petrol tax. This hip-pocket hike would be easier for our members to take if more was going back into vital roads and public transport.

“The only guarantee we’ve had is for a one-off $1.1 billion injection for the Roads to Recovery program, which is good, but it’s not enough.”

From 2004/5 through to 2014/15, 32 per cent of the fuel tax was returned to the road network but the NRMA is calling for 50 per cent of the tax to be reinvested into roads.

tanya.marschke@fairfaxmedia.com.au