Petrol Up Again

Motorists face sharp increases in petrol prices in the new year as two tax rises coincide with an increase in the cost of oil, motoring groups have warned.

Increases to VAT and fuel duty will come into force next Tuesday (4th January, 2011), which will mean a typical family with two cars (how quaint, this is now the norm) will find its annual petrol costs rise by £104 to more than £1 700, according to the AA. 

Oil prices in New York yesterday increased to more than $93 a barrel and with freezing conditions affecting America and mainland Europe, experts predict a barrel of oil could soon pass the $100 mark.

The Conservatives previously pledged to introduce a “fuel duty stabiliser” to cut taxes on petrol when oil prices are high, however, Cameraman has failed to introduce the policy and ministers are now likely to come under pressure to offer help to motorists.

Hope no one is holding their breath...