Petrol prices to soar
The Retail Motor Industry, which represents around two-thirds of the UK's petrol stations, said petrol prices could rocket to an all-time high of 125.9p-a-litre next year.
The perfect storm for prices
The planned increases in fuel duty in October and January, and the 2.5% VAT increase in January are to blame for the long-term increase in prices, while the rise in the cost of crude oil and fluctuating exchange rates could result in a 4p increase in fuel by September.
Brian Madderson, RMI Chairman Petrol, said: 'A crude oil price increase will feed through the supply chain and could result in prices going up by as much as 4p-a-litre in the next three weeks.
'We also need to remember that the new Government did not cancel Labour's Budget commitment to raising fuel duty by 1p-a-litre from October 1 and a further 0.76p from January 1, with both having VAT added.
'Then we have the coalition's emergency Budget proposal to increase VAT to 20% from January 4, so the outlook remains extremely difficult for motorists and retailers alike. We could see new record pump prices within six months.'