The Rudd Government has done it again.

Another tax on an unsuspecting Australian public.

The Nationals Senator for New South Wales John Williams says the 2.5 cents per litre excise on LPG from July next year, rising to 12.5 cents per litre in 2015, is a cynical cash grab by a desperate Government.

Senator Williams said it’s a classic case of “now you’ve converted, you’ll pay”.

“The Government offers a grant of $2,000 for the conversion of eligible private vehicles from petrol and diesel to LPG, and $1,000 for the purchase of a new vehicle with an LPG unit fitted at the time of manufacture.

It is estimated 500,000 motorists will face the excise slug, and the Rudd Government is making it clear it wants its money back.

The majority of taxi cabs run on LPG as it is cheaper than fuel, and it can cost anything up to $4,500 to have the latest liquid injection technology. Two large operators have told me there will have to be an increase in fares when the new tax starts in July next year.

This will affect the vulnerable such as pensioners and people on low incomes who rely on taxis to take them shopping and to medical appointments. They will be digging deeper to pay their fare, but the Rudd Government could not care less.

The irony of this sneaky Budget move is that it may stop many vehicle owners converting to LPG which gives off lower emissions than petrol and diesel and is therefore better for the environment. That does not seem important to the Prime Minister anymore”, Senator Williams said.