Her party flagged plans yesterday to introduce a Private Members Bill, retrospectively scrapping the fuel excise increase if the government failed to do it first.

Federal Opposition Leader Kim Beazley said the bill could pass with the help of Liberal and National Party MPs, who in the past have said they opposed the excise increase.

Tomorrow, the routine excise increase is expected to raise petrol prices by around 1.7 cents a litre.

“If Mr Howard refuses to act, Labor will introduce a Private Members’ Bill at the first parliamentary opportunity to abandon this excise increase,” Mr Beazley said yesterday.

The Bowral-based Ms Merriman said the fuel excise and GST are a tax on a tax with each forcing the other up in an inflationary spiral.

“This is a government which instead of helping people is hurting people,” Ms Merriman said.

She said tomorrow’s price hike will be more like two cents a litre for unleaded petrol, meaning most prices on the Highlands will rise to around 92-94 cent per litre mark for the first time since early December.

She also pounced upon recent comments she claims to have been made by Hume’s Liberal sitting member Alby Schultz.

“While Mr Schultz is reported as saying that the cost of fuel ‘is scandalous’, his government is doing nothing to bring it down, they are doing the opposite,” she said.

Mr Beazley told journalists, “with support from the government members who have expressed sympathy for fuel tax relief, the bill will have the numbers to pass the parliament.”

Prime Minister John Howard yesterday ruled out scrapping the excise, saying that would be financially irresponsible.

“We decided it was a better investment for the future of Australia and better for Australian motorists if we put $1.6 billion into additional road funding,” he said.

“I understand that if you could do both, you’d be very popular but we had to make a choice - $1.6 billion into road funding or waive this excise increase.”