The price of fuel is increasing.
The Chancellor announced the latest 1.84p rise in the price of fuel duty in the Pre-Budget Report last year.
The rise will affect both petrol and diesel prices. The total VAT-inclusive rise is 2.12p per litre.
The AA calculates the rise will add an average £27 a year in tax on car fuels bills.
However, from 1 April 2010, following VAT’s return to 17.5% and an inflation + 0.5p fuel duty rise this time next year, a further 4p a litre is likely to be added to the cost of petrol and diesel, advises the AA.
“This and other fuel tax increases will severely dent consumer spending and undermine the UK’s economic recovery,” commented Edmund King, the AA’s President.
Fuel duty rises announced in the Pre-Budget Report
- 01 April 2009 1.84p per litre (2.12p + VAT @15%)
- 01 April 2010 0.5p per litre (0.59p + [email protected]%)
Further information
For comment on the fuel duty rise, read the Editor’s Blog Fuel duty rise from midnight tonight
Fuel duty rises 1.84p from midnight