
Hard done by British motorists are set for another hammering when the price of fuel rockets over the next few months.
On the 1st January 2010 the Government's temporary VAT reduction comes to an end, which will see fuel prices increase by around 3 pence per litre.
In last year's Budget the Chancellor, Alistair Darling, announced that fuel duty would rise with the rate of inflation, which would add a further penny to every litre from 1st April 2010. On the same date the Government is withdrawing biofuel tax incentives from the refiners, which will result in a one penny increase per litre at the pumps. That's a 5 pence increase due to taxation by 1st April 2010.
On top of this analysts predict that prices could rise by an additional 5 pence per litre due to the increase in market costs.
The next Government, set to inherit Labour's bleak economic legacy, could also decide to further raise fuel duty and VAT by the end of the year.
Worse case scenario, which is entirely possible, is that fuel will reach about £1.25 per litre by the end of the year. Put another way the driver of a pretty average car (Ford Focus) who covers a pretty average distance (15,000 miles per year) will be worse off to the tune of £340 this year compared to last. That's on top of the salary increase they probably didn't get if they work in the public sector.
I told you things weren't going to be pretty!
Things can only get better...
On the 1st January 2010 the Government's temporary VAT reduction comes to an end, which will see fuel prices increase by around 3 pence per litre.
In last year's Budget the Chancellor, Alistair Darling, announced that fuel duty would rise with the rate of inflation, which would add a further penny to every litre from 1st April 2010. On the same date the Government is withdrawing biofuel tax incentives from the refiners, which will result in a one penny increase per litre at the pumps. That's a 5 pence increase due to taxation by 1st April 2010.
On top of this analysts predict that prices could rise by an additional 5 pence per litre due to the increase in market costs.
The next Government, set to inherit Labour's bleak economic legacy, could also decide to further raise fuel duty and VAT by the end of the year.
Worse case scenario, which is entirely possible, is that fuel will reach about £1.25 per litre by the end of the year. Put another way the driver of a pretty average car (Ford Focus) who covers a pretty average distance (15,000 miles per year) will be worse off to the tune of £340 this year compared to last. That's on top of the salary increase they probably didn't get if they work in the public sector.
I told you things weren't going to be pretty!
Things can only get better...


