The decision to create a new dedicated section at Danescourt for larger coffins was taken by councillors in May.
A spokesperson said, before the approval, the authority contacted 25 funeral directors who serve the city to ask for their thoughts and 10 responded with one objection.
But Mr Hickton, from Hickton Family Funeral Directors, an independent company with seven branches across the West Midlands, said the consultation was “meaningless” and “didn’t involve the public at all”.
“Essentially it’s a fat tax,” he said.
“You know people have paid into the system their entire life, paid their council tax to Wolverhampton Council, and for them to be told [the grave is] 20% more because of the size of their loved one, it’s not really acceptable or fair.”