Fuel duty up from April 1

By Mark Rainford

24th March 2010

Chancellor Alistair Darling has opted to stagger a three pence rise in fuel duty over the coming months. The Chancellor was expected to increase fuel duty by three pence from April 1, but widespread concerns over the expected Budget announcement have caused the change in approach.

See the 2010 Budget for Motorists as it happened

Fuel duty will now rise for the third time in 12 months with a one penny per litre increase taking place on April 1, with further 1p increases being made in October 2010 and January 2011.

The decision means that the average price of petrol will take a little longer to reach the expected 120 pence per litre. Fuel prices have rocketed in recent months despite the relatively low price of for a barrel of oil, well down on the 2008 highs of 7 per barrel. The weak pound has been blamed for the current high price that consumers pay for fuel at the pumps.