Petrol prices set for rise following emergency budget
23/06/2010
Despite a freeze on the price of petrol duty announced by the Chancellor George Osborne in his emergency budget this week, petrol prices are still set to increase.VAT increasing to 20% from 4 January 2011 will add about 3p per litre of fuel at current prices. On top of this, motorists will still face the increases - announced earlier this year - of 1p a litre in October and 0.76p a litre next January.
And that's not the last of it, as motorists will also be hit by a rise in insurance premium tax. AA President Edmund King said: "We estimate that taking all the increases into account, motorists will, by January, be paying 4.63p a litre more for petrol and 4.68p a litre more for diesel than they are now."
All this will mean another tough year for motorists who have already seen steep price increases at the pumps this year. The typical car-sharer saves around £800 a year, so sign up and make sure you're sharing (and saving) before fuel prices make driving even costlier...
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