'It's a worry': Cabbies to bear the cost of fuel excise rise in Dubbo

"It is a worry. It will have a significant impact on us and certainly will impact the bottom line," said Greg Colin, chairman of the board for Dubbo Radio Cabs.

"We're no different to any other business really and it will have an impact on all transport operators with the amount of fuel we do use. But it's something we've just got to factor into our budget."

The Morrison government announced a six-month halving of the fuel tax in its last federal budget in March.

However, this is due to expire on Thursday and motorists are being warned petrol prices will climb once again with the excise more-than-doubling to 46 cents per litre.

Drivers should expect to pay about 25 cents a litre more for petrol - or about $15 more to fill one 60-litre tank.

Mr Colin said each of his company's cabs goes through about a tank of fuel a day, but they would be wearing the fuel price rise themselves and not passing it on to their customers.

"It's a cost we will have to absorb - there will be no fare increase or anything like that for the consumer. Our industry is heavily regulated and there's no talk of any fare rises so at this stage the taxi industry will be wearing that cost ," he said.

Federal treasurer Jim Chalmers said the federal government cannot afford to extend the halving of the excise which saw tax on fuel cut from 44.2 cents per litre to 22.1 cents per litre in March. But he said consumers would be spared from immediate price rises as there is already $700 million litres of fuel "in the system".

"We're under no illusions this will be difficult for people - it's a difficult decision for us to take as well," Chalmers said in a press conference last week.

"The ACCC and the government expect the price of petrol shouldn't shoot up at the bowser on Wednesday night by the full (amount) if the normal market pressures are in operation."

The Australian Competition and Consumer Commission said they will be monitoring petrol prices around the day the full excise is introduced and say they expect there will be no "uncharacteristic or abnormal retail price increases".

With petrol prices in Dubbo currently sitting at an average of 180 cents a litre - down from a peak of $2.07 in late June - Mr Colin hopes the fuel price will continue to drop despite the excise being returned to its original level.

"Hopefully the oil prices will come down a bit more and give us some relief but we don't know what the future will look like. We'll just have to wait and see what happens," he said.

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