The Federal Government has struck a deal with the Labor party which will see the fuel excise increase twice a year in line with the rate of inflation.

The bi-annual hike will net $3 billion over the next four years, and an estimated $23 billion over the coming decade.

“We are willing to compromise, the price of not compromising would have left Australians worse off,” Opposition Leader Bill Shorten said.

Australians have been paying the increased petrol excise since November last year, but today’s deal makes it permanent.

The cost is the equivalent of around 40 cents for every 50 litres of petrol used, or around $20 a year.

Every six months, excises increases will be tied to inflation, which will have a larger impact when inflation surges.

Labor’s deal means an extra $1.1 billion will be spent upgrading regional roads over the next two years.

Extracted in full from Nine News.