No Budget Fuel Duty Increase – Prices To Rise Anyway

Earlier today Chancellor George Osborne ruled out any fuel duty increases during his first emergency budget.

But motorists will still face an earlier-announced increase of 1p a litre in October and 0.76p a litre in January 2011.

And with VAT set to increase to 20% in January 2011, new year pump prices are set to grow even further.

The AA president Edmund King commented:

“There is some relief that there is not going to be more punishment at the pumps but motorists will face a double whammy in the new year.

“We estimate that taking all the increases into account, motorists will, by January, be paying 4.63p a litre more for petrol and 4.68p a litre more for diesel than they are now.

“The insurance premium tax increase is also a blow. We already have a problem with uninsured vehicles.”

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