The Government's announced a $50 a week tax credit for families hit hardest by petrol price shocks.

The support package comes through the in-work tax credit, under the Working for Families scheme.

It'll apply for a year - or until 91 stays below $3 a litre for four weeks in a row.

Infometrics Chief Forecaster Gareth Kiernan says removing the fuel excise could have been potentially inflationary. 

"While everyone is feeling the pain at the moment, some people are feeling it a hell of a lot more than others and so I think trying to limit it to lower and middle income people is much more appropriate." 

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