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Fuel prices set to increase to record levels

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Motorists are being urged to prepare for an increase in fuel prices as the AA predicts prices could reach record levels.

It had been revealed that experts believe that within a month motorists could face a 6p a litre hike as fuel prices soar for the UK.

At the start of the year fuel was expected to increase twice but after backlash from motoring groups and motorists the planned increases were scrapped until the New Year. It was hoped the cancelled increases would give motorists a chance to get more for their money after years of constant increases.

Fuel has already increased slightly since mid-July by 3.5p and there has also been a 1.5p increase for this week alone. Motorists who use diesel for their vehicle are already facing an increase by 3.19p. The AA also found that motorists are paying £4.5m a day more on fuel.

The plans of the Government for the New Year could see motorists paying £1.50 a litre for fuel or £6.82 a gallon.

The AA's head of public affairs, Paul Watters, commented: “Once upon a time, petrol prices would rise heading into the summer, due to higher demand for the motoring season, and then fall away late summer onwards.

“The cost of diesel would then pick up heading into winter as demand for heating oil came into play. These days, demand appears to be increasingly irrelevant – it doesn’t matter how much drivers cut back, the commodity markets always seem to find a reason for pumping up oil and wholesale prices."

He continued: “France introduced the first stage of its transaction tax on the financial sector a fortnight ago, with other European countries considering a similar move. The French government hopes that this will curb speculation. UK drivers may have some sympathy.”

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By Amanda Bainbridge