Greens vow to block Abbott's fuel price increase

THERE will be no government increase to the fuel tax with Greens leader Christine Milne vowing to block it in the Senate, describing it as a "tax on families".

The refusal to budge by the minor party creates a budget problem for the Abbott Government worth billions.

The Palmer United Party and Labor are also each opposed, leaving the government with a hole of about $2.4 billion over the next four years.

Ms Milne said while she would support an increase to the fuel excise in an effort to reduce pollution, the funds raised would be plumbed into developing more roads.

"It makes absolutely no sense to put the money into roads - that will increase congestion and make it harder for people in places with little or no public transport," Ms Milne said.

"Tony Abbott wants to back the big miners, continue to give them cheap fuel, and make ordinary families pay more."

Mr Abbott has previously said the increase to the fuel tax would cost the average family about 40c per week in its first year.