Petrol prices rise as fuel duty goes up

Motorists already facing rising pump prices will be hit by another government fuel-duty increase this week. Despite intense lobbying to get it to reverse its decision, the Government is pressing ahead with a planned 2p-a-litre rise in fuel duty tomorrow.

With VAT included, the rise will actually be 2.3p at a time when the average price of petrol has risen to around 105p a litre. Motoring organisations fear that the 2.3p-a-litre increase could soon become a 5p rise as oil prices worldwide increase.

The RAC said that a 5p increase would mean the average two-car family spending an extra £120 a year on petrol. The duty rise will be the third in nine months following rises in April and December.

Petrol prices at the start of 2009 were roughly 85p a litre but could now reach 110p a litre within weeks. Adrian Tink, of the RAC, said: "This third fuel duty hike is unacceptable."