AA Ireland says the carbon tax increase will only push up living costs for those dependent on cars and does nothing for the environment.
The cost of both diesel and petrol increased from midnight, with other fuels set to be impacted from May.
Drivers will pay around two cent more for a litre of petrol and two and a half cent for a litre of diesel.
Conor Faughnan, from AA Ireland, says this will particularly hurt those living in isolated parts of the country.
Meanwhile a local opposition TD says while aspects of the budget are to be welcomed, much more could have been done to help people through the Covid crisis
Sligo-Leitrim North Roscommon Sinn Fein TD Martin Kenny believes that the government failed to deal with some big issues facing people who find themselves out of work as a result of the pandemic.
