Fuel duty hikes pump prices to record for this year

September 1, 2009 | By | In Statistics

Latest 2p per litre rise adds up to a 23% rise since January. And there's worse to comeFilled your tank today? If you have, it may have cost you £1.50 more than it did a week ago. The government raised fuel duty by a further 2p per litre from Setpember 1. Add in the VAT, and the all-up increase comes to 2.3p. For a typical, two-car family, this latest rise adds £120 per year to fuel bills.

The rise in duty will be the third in nine months, following hikes in December and April. According to the Daily Mail, prices at the pumps started the year at around 85p per litre for petrol, with diesel a few pence dearer.

With the latest increase, they are at 105p per litre on average (although diesel prices have dropped back to match those for petrol).

Most retailers have passed on the increase immediately, although supermarket chain Morrisons has said that it will hold back prices at its filling stations until September 6.

The RAC says that British drivers have seen prices rise by 23% during 2009, adding up to an extra £11 per tankful for the average car. And more rises are on the way. Aside from likely increases as world wholesale prices for oil increase, motorists will be caught when at the year-end VAT reverts to 17.5% after a year at 15%. There’s also another fuel duty rise scheduled for next April.

Surveys indicate that four-fifths of motorists believe that fuel duty is too high, particularly because the money so raised ds not appear to go towards the upkeep of the UK’s roads.

Motor Mouth: should fuel duty all be spent on repairing the UK's dismal roads?

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