Government to hike fuel prices 2p?

* Rise to come next April? * Government needs to raise cash * Industry insiders say rise is inevitable...

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Jim Holder
22 October 2008

Motorists face a 2p a litre tax rise in fuel prices next April.

The hike has been postponed since last April, but reports suggest Chancellor of the Exchequer Alistair Darling is under pressure to implement the rise to raise money.

Motoring industry leaders, who have met Treasury Minister Angela Eagle in the run-up to the autumns Pre-Budget Report, say they have been left 'in no doubt' that a fuel duty rise is on the on the agenda.

They said their pleas to continue a seven-month-long duty freeze 'fell on deaf ears' as the Treasury looked to replenish the Government's depleted finances.

Chancellor of the Exchequer Alistair Darling has already given a commitment not to change fuel duty until next April at the earliest, although an announcement could be made before that date.

The news of a possible tax hike comes just a week after Prime Minister Gordon Brown called on fuel retailers to pass on oil price savings to motorists faster.