The price of a litre of petrol will go up 1.25p from midnight tonight following Chancellor Gordon Brown's pre-Budget announcement.
In a widely expected move, the Chancellor also increased the duty on diesel from 47.1p to 48.35p, in line with inflation.
That will push the average price of a litre of unleaded up to 86.4p, while a litre of diesel will cost 92.35p on average. Duty on bioethanol has also increased by 1.25p, while the tax on liquefied petroleum gas (LPG) is up 3.21p
The Government had frozen fuel duty in the 2006 Budget because of rocketing oil prices, however the Chancellor said prices had fallen between eight and 12 pence per litre. Mr Brown rejected demands to re-link petrol prices to inflation.
Commenting on the pre-Budget announcement Edmund King, Executive Director of the RAC Foundation, said: 'The immediate fuel duty increase will go down like a flat balloon in this season of goodwill. However, the longer-term icing on the cake could be the recognition of the need to speed up planning and investment in the road and rail network.'
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