Fuel duty uproar as pump prices to rise by 12p a litre
PETROL prices are set to rocket by up to 8p a litre in the next few weeks, experts said yesterday.
Diesel drivers could be even worse off, with pump prices up by as much as 12p a litre.
The forecast comes following the price of Brent crude oil increasing by £13 a barrel since the middle of this year, up by about 20 per cent.
It prompted calls for Chancellor Philip Hammond to scrap a fuel duty rise in his Autumn Statement next week.
A barrel of oil is trading at more than 63 dollars, the highest since June 2015.
It means a definite price hike at the pumps for Britain’s 37 million drivers. The RAC motoring group predicts petrol will rise by 3p a litre from its current 119p average, while diesel will go up 1p to 121p.
Simon Williams, the RAC’s fuel spokesman, said: “Motorists are going to be hit by rising pump prices in the next few weeks.”
George Buckley, UK economist at investment bank Nomura, predicts hikes of between 7p and 8p a litre.
If the average car uses about 35 litres of fuel a week, Nomura’s forecasts would add £150 a year extra to motoring bills. Mr Buckley estimates that petrol prices are set to rise by 6.5 per cent at a time when food prices are going up 3.5 per cent, but earnings are lagging behind at 2.2 per cent.
Howard Cox, of the pressure group Fair Fuel UK, called on Mr Hammond to freeze fuel duty in the statement next Wednesday.
Duty has remained at 57.95p a litre since 2011, but diesel is taxed higher than other EU countries. Mr Cox said: “Britain’s struggling small traders and businesses deserve and need all the help they can get.”
Further rises in petrol and diesel will boost inflation and put pressure on the Bank of England to raise interest rates again, he warned.