Fuel prices that were supposed to have a big rise in April, but will instead be staggered over the rest of the year in order to gently ease consumers into the cost of rising inflation according to a statement that the Chancellor made this week.
However, motoring groups are not happy with the statement since they claim that petrol prices are still likely to hit record highs next month of up to £1.20 per litre, which has not been aided by the fact that the Chancellor has withdrawn his subsides for biodfuel production.
Fuel duty was set to increase by around 3p next month under a plan outlined in last year’s budget, but instead come April they are due to go up by 1p, then one more pence in October, with the final raise occurring in January.
Darling commented that the staggered raise should help the pressure on family incomes and business incomes during a time period when they are already struggling with other price increases.
The previous 2008 budget states that fuel duty will rise over the next three years by inflation. However, driver’s reacted to the news in anger because taxes in general are already much higher in just an 18 month time period.
Currently drivers are paying over 117 per litre which is close to the highest fuel prices seen in July of 2008 at 119.7.
The AA estimates that their removal of the biofuel subsidy will also add another 1p to gas prices over the month of April leading to fuel prices of around £1.20 per litre.
