A double whammy of cost increases looks set to hit motorists hard this month, the AA has warned. On April 1 fuel duty will rise by the rate of inflation +1p, potentially adding 3p per litre to the price of your first fill-up next month.
But it’s a 17% hike in wholesale petrol prices over the last month or so that’s currently sending prices rocketing, with the AA warning petrol could soar to beyond the 119.5p per litre peak seen in July 2008. And that’s before the increased fuel duty rate hits home.
Petrol up by 25p a litre
According to the AA’s monthly round-up of fuel prices for February petrol was already 25p per litre more expensive than the same time last year, with diesel up by 14p. At the end of February prices had stabilised at 112p for petrol and 114p for diesel, but this week petrol was already close to 116p, diesel showing similar rises.
Bearing this in mind the AA is asking the Government to postpone the hike in fuel duty. “Political parties have started to jump on the bandwagon of high fuel prices, calling for a fuel price/tax stabiliser,” says AA president Edmund King. “In the AA’s opinion, the easiest and quickest stabiliser would be to freeze the fuel duty increase on 1 April.
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