Fuel prices are soaring – and are set to rise even higher.
The £5 gallon has made an unwelcome return, as prices per litre reach a record high. There’s been a 25 per cent rise since January.
But more hikes are on the horizon, analysts warn, as the return to 17.5 per cent VAT next month will add 11p to the price of a gallon. The increase to 108.7 pence per litre (ppl) for petrol and 110.0ppl for diesel also wipes out the savings British motorists made over the last 12 months, after diesel prices fell from their 133.25p per litre peak back in July 2008.
But next year could be worse still, according to the RAC’s Cost of Motoring Index. Motoring strategist Adrian Tink said: “The index is very sensitive to petrol prices, so costs look as if they’re going up for 2010. VAT will add another 2.4ppl, there’s a scheduled budget increase in April, while changes to road tax bands will see the cost of a year disc rise by £30 on average.”
Fuel prices have risen due to a hike in crude oil costs – despite healthy supply, the latter have doubled from under £25 a barrel in January.
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