FUELtrac general manager Geoff Trotter told PNN the plan to cut petrol excise by 5c was "ridiculous".

"In the overall scheme of things 5c is neither here nor there," he said.

"But it does have a serious impact on the Government's total revenue and taxation base."

Trotter said motorists would not even see the savings within Australia's weekly fuel price cycle.

"The prices move up and down by up to 15c a litre within these weekly price cycles so you won't even know if you are getting the benefit of it - you will just be lost in the weekly price cycle."

Trotter said any government fuel excise cuts amount to distortion in the market and sends the wrong signal.

"By passing through these international price movements as they occur it really is a driver for people to start making structural changes to their behaviour, particularly in relation to the types of vehicles they are driving.

"We think it is a dangerous period to be fiddling around with excise rates. It's like trying to hold back the tide."

Commenting on the recent high fuel price cycle, Trotter said oil producing companies were hiking the price of oil to compensate for the lower US dollar.

"The biggest determiner at the moment of the oil price is pretty much what is happening with the US dollar. So if it strengthens then we expect the prices will retreat further.

"If you look at it and go back 12 months or so, the oil countries basically maintained equilibrium in terms of total revenue because American dollars have declined."

Last week the PNG Government cut its excise on unleaded petrol by the Australian equivalent of 8c a litre.