September 1, 2009

Motorists hit by 2p fuel duty rise

Motorists will face extra pain at the pump from today as the 2p rise in fuel duty comes into force — the third increase in the tax on petrol in nine months.

Motoring groups attacked the move, saying that motorists were being treated as a “soft target” for tax rises. They fear that rising global oil prices could push the price of a litre up by 5p, which would see the typical family spending £120 a year more on petrol.

The Freight Transport Association, which represents haulage companies, said that the increase could force some hauliers out of business.

The inclusion of VAT takes the rise to 2.3p, while the price of a litre of unleaded remains high at about 105p, up from about 85p at the start of 2009.

Despite the price of oil falling by almost half over the past year, from a high of $147 a barrel to about $70 a barrel, the cost has not been passed on to motorists at the pump, while tax accounts for about 65p in the price of each litre.

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