Fuel to hit £1 a litre

17 September 2007

£1 a litre is just weeks away
Rising oil prices combine with tax hike
AA calls for Chancellor to delay 2p a litre tax rise

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The Chancellor of the Exchequer has been asked to delay a tax rise on fuel to head-off prices of more than £1 a litre.

Crude oil prices have recently risen to their highest level since the 1980s and, with a 2p rise in fuel duty set to come into effect on October 1, analysts are tipping fuel prices to top £1 next month.

The call for the Chancellor to delay the tax rise is being made by the AA, which says any rise will 'rub salt in the wounds' for drivers already hit by a succession of interest rate rises.

However, the tax rise was announced in the Chancellor's spring Budget, making it unlikely that a U-turn will be sanctioned.

Average fuel prices are currently 95.2p a litre for petrol and 96.7p a litre for diesel.

The rise in crude oil prices follows fears that the hurricane season in the Gulf of Mexico will disrupt supply.