Prices at the pumps could rise 12p a litre

FUEL duty could increase by as much as 12p a litre next year, the Treasury watchdog has warned.

The move could add more than £150 to the average family’s petrol bill, and would raise an extra £5.7billion for the Government.

In its assessment of the Autumn Statement – in which Chancellor Jeremy Hunt made no mention of fuel duty – the Office for Budget Responsibility (OBR) said: ‘The planned 23 per cent increase in the fuel duty rate in late March 2023... adds £5.7billion to receipts next year. This would be a record cash increase and the first time any Government has raised fuel duty rates in cash terms since January 2011.

‘It is expected to raise the price of petrol and diesel by around 12 pence a litre.’

However, it is expected that come the spring budget, the Government will opt not to increase fuel costs by this much.

Successive Conservative chancellors have used their budgets to freeze rises in fuel duty since 2011 – then- chancellor Rishi Sunak cut fuel duty by 5p a litre in March.

A Treasury spokesman said last night: ‘The 23 per cent figure came from the OBR, not the Treasury. It is based on forecasts that are subject to change. We have not announced anything on fuel duty today – the existing 5p cut will remain in place until March 2023, and final decisions on fuel duty rates will be made at the spring budget.’

The OBR warning came just a day after 23 Conservative MPs wrote to the Chancellor, calling on him to cut fuel tax.