Premeir Anna Bligh yesterday told the media that the option was being actively considered by her Government, despite ruling out such an option just last year.

Ms Bligh says funds are needed to keep the Government's massive infrastructure program on track, thus protecting jobs and the economy.

Scrapping the subsidy would save the government $600 million a year.

"In this year's budget I will do what I said I would do in the election campaign - I will prioritise jobs and protect our building program," she said.

"To do that we've got to look at some pretty tough decisions - and right now everything is on the table."

However, the fuel subsidy, which puts Queensland motorists and businesses at an advantage compared to those south of the border, has long been viewed an economic stimulus in its own right, helping to lure businesses under the guise of Queensland being a "low-tax state".

The idea of scrapping the subsidy has been bagged by industry groups, including AgForce, which says rural residents will be hit particularly hard.

"Rural and regional Queenslanders are impacted by any effect on the transport sector because everything must be freighted in and out," AgForce president John Cotter said.

"Regional communities are already paying significantly higher prices at the fuel pump, so the 8c/l translates into another impost which increases down the supply chain.

"The downstream multiplier effect of 4-to-1 means increased input costs on small businesses which are a significant employer in rural and regional areas, so jobs will be threatened at a time of financial uncertainty."