The Abbott government has averted an immediate confrontation with the Senate over its plan to raise more fuel tax revenue, but it may have put itself on a collision course with voters after announcing the price of petrol will rise without parliamentary approval.

The controversial move, which the government estimates will rake in an $2.2 billion, drew a hostile reaction from the federal Opposition and the motoring lobby, with the hip pockets of average Australians to start footing the bill in a fortnight.

The Australian Automobile Association says the new fuel excise will costs motorists up to $3 a tank, not the 40 cents Prime Minister Tony Abbott is claiming.

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Prime Minister Tony Abbott

Political sidestep

The government resorted to increasing the tariff, rather than the excise duty, after non-government senators said they would block any proposals that would increase the retail price of petrol.

By increasing the tariff, the government has a year to win support from the Senate, whereas the excise duty proposal would have required approval before the end of the year.

Andrew McKellar, chief executive of the Australian Automobile Association, said the tariff increases would trigger rises in bowser prices within two weeks.

“It’s a very disturbing and deeply cynical move,” he said. “It is a very illegitimate and underhanded way of imposing a tax increase.”

Opposition Leader Bill Shorten described the decision as outrageous while motoring groups called it gutless, sneaky and tricky.

Mr Shorten said Mr Abbott has no mandate from the people or parliament for this petrol tax. He pointed out the decision came less than 24 hours after Mr Abbott told parliament he wanted a “mature discussion” about taxes.

Faced with a state election next month, the Liberal Victorian Treasurer Michael O’Brien is also concerned about any tax that would increase the cost of living.

‘No bypass’

But Finance Minister Mathias Cormann rejected suggestions that the new measure was introduced to bypass the Senate.

“This is not an effort to get around the Senate,” he said. “This is using the legislation as it currently stands.”

Senator Cormann defended the government’s decision, saying that the impact on households would be “modest”.

“Your typical household using about 50 litres of fuel a week will only pay about 40 cents a week more for their fuel,” Senator Cormann said.

“It is our intention that additional revenue will be invested in job creating productivity (and) enhancing road infrastructure.”

However, Mr McKellar warned that the government was taking a big gamble.

If the Senate does not approve the increases within 12 months the government will be required to refund the extra revenue it collects.

Mr McKellar is worried that motorists might miss out on the refunds because the government was more likely to pay it back to petrol retailers.

“That would make the move a complete joke,” he said.

“It would be completely inadequate if they give it back to the fuel companies and not the families who have to pay for it.”

The new tariff is expected to lead to increases in petrol prices from November 10.