Petrol costs near record as fuel duty increases

Petrol prices will edge closer to a record high today when motorists will be hit with a 1p-a-litre fuel duty increase.

The rise will take prices from an average of 117.8p a litre to just under 119p – almost up to the record of 119.7p in 2008.

The pain could have been even greater for road users if Chancellor Alistair Darling had not decided to introduce a near-3p fuel duty rise scheduled for April 1 in three stages.

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Drivers will now pay an extra 1p tomorrow, a further 1p in October and another 0.76p next January.

RAC motoring strategist Adrian Tink said: "Motorists are currently seeing petrol prices rise on a daily basis. This fuel duty increase is only going to add to the misery as motorists see their hard-earned cash swallowed up at the pumps.

"Worryingly, it's now a case of when, rather than if, the record petrol prices will be broken. The Chancellor had the opportunity to give motorists a bit of respite but has only staggered the pain rather than ease it."

The fuel duty rise will mean that petrol has risen by 11p a litre since the start of the year.The RAC said this equated to around 121 extra in fuel costs for the average car.

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Motorists will also be hit by the "showroom tax" which will mean those buying the most-polluting new models will have to pay higher vehicle excise duty (VED) for the first year.

Those buying cars that emit more than 255g of CO2 per kilometre will have to pay 950 for the first year. However, those buying vehicles emitting less than 130g/km will pay no VED at all in the first 12 months.

The Society of Motor Manufacturers and Traders said it was disappointed that the Government didn't defer the introduction of the first-year rate or the increase in standard VED rates.