Consumer watchdog ACCC warns businesses face prosecution for price hikes wrongly blamed on new fuel tariff Finance Minister Senator Mathias Cormann announces fuel prices will rise from 10 November. THE consumer watchdog has warned grocers and other businesses that they will face prosecution if they increase prices and wrongly blame rising transport costs on the Federal Government's new fuel tariff. The warning comes as the Abbott Government moves to quell fears families will be forced to pay more at the checkout because of an increased tax at the bowser. HIKE: Real cost up to $3 a tank, says motorist group "IRRESPONSIBLE": Qld MP Vaughan Johnson slams fuel excise Finance Minister Mathias Cormann said eligible businesses would receive extra taxpayer-funded fuel credits to cover the increases to the fuel tariff, which will start on November 10. "The Government does not expect increases in the cost of groceries, fruit and vegetables as a result of implementing this budget measure,"" he said. The Government has introduced a Bill to amend the Fuel Tax Act 2006. The fuel tariff increase will raise $2.2 billion for the Government over the next four years. Under these arrangements those transport companies which are currently eligible to claim fuel tax credits for their heavy vehicles (above 4.5 tonnes) will be able to claim the full adjusted fuel excise amount as a credit. The tariff increase will raise $2.2 billion for the Government over the next four years. An Australian Competition and Consumer Commission spokesman warned businesses must not make misleading, deceptive or false representations about the price of goods or services. "This includes when making representations about rising fuel costs,"" the ACCC spokesman said yesterday. Under Australian consumer law, it is illegal for a business to make representations that are incorrect or that are likely to create a false impression. This includes representations about the price of goods or services. Industry groups also fear the excise will hit tourism with claims grey nomads will plan shorter trips and spend less money in country towns. A leading motorist group says the true cost of the government's new fuel excise will be up to $3 a tank. National Seniors chief executive Michael O'Neill said the shock increase would hurt retirees. "Retirees on small, fixed budgets, will certainly feel the pinch at the bowser,"" Mr O'Neill said. RACQ spokeswoman Renee Smith smashed the tariff plan. "We didn't see this one coming and not only are we unhappy about the increase, we're angry about how the Government has gone about it,"" she said. We think it's a been a sneaky back-door move; ­raising a tax which doesn't have either popular or parliamentary support. Fuel is a major cost of living cost for Aussie families; next to groceries it is one of our biggest weekly bills. "Even a just small increase will be felt when the cost of living is so high."" The Government claims most people will pay only 40¢ a week more for petrol.