IF YOU thought paying your rego and driver's licence fees were a right pain in the hip pocket, things are about to get worse.

From July 1 fees are set to jump again, with a one-year licence to go from $76.25 to $78.90 and a two-year licence from $106.30 to $110.

For car registration, prices will rise for a four-cylinder vehicle from $364.65 to $377.40 and a five or six cylinder from $545.80 to $564.90.

The RACQ has demanded a reprieve for motorists as the Queensland Government prepares to deliver a budget which would force motorists to fork out even more to own a car.

The motoring body has urged the government to rethink 3.5 per cent increases to car registration and driver licence fees, given motorists were already charged more than many other states.

Local driver Melanie Cottle said she was already travelling from Childers to Bundaberg just to get cheaper fuel and said the rise in licence and registration fees would be another nail in the coffin.

"I drive to Bundaberg because fuel is 13 cents cheaper,” she said.

"Now these fee hikes are just going to add to the woes we have already got.”

Bundaberg man Muhammad Ali echoed her sentiments and said the increase did not reflect the current wages. "It's not good, we already have to pay for so much and prices just keep going up,” he said.

"How will they increases wages? They need to figure that out so it is fair.”

RACQ Head of Public Policy Rebecca Michael said transport costs were one of the biggest household expenses for Queenslanders - costing about $200 per week.

"When costs like rego and licences go up, Queensland families really feel it hit in their hip pocket,” Dr Michael said.

"That's why the government needs to stop the unfair double inflation increase and freeze the cost of car rego.

"For more than four years we've seen motorists hit with a cumulative increase of nearly 15 per cent - it's outrageous.”

So with fees set to rise, what exactly will the money be going towards?

A Transport and Main Roads spokesperson said revenue from registration fees was used for construction and maintenance of the state-controlled road network.

According to the department, vehicle registration and licence fees were increasing in line with the Government Indexation Policy (GIP).

"From 2019/20, increases will revert to the Consumer Price Index (CPI),” the spokesperson said.

To ease the burden of vehicle registration payments, the department said customers could choose to pay six monthly or quarterly, in addition to the standard 12-month payment term.

"We also offer a direct debit service, which allows eligible customers to set automatic registration payments from their bank account or credit card,” the spokesperson said.

"Customers can visit our website for a free quote on the cost of registration for their motor vehicles, trailers and vessels.”

What do you think about the price hike to rego and licence fees?