Petrol prices to soar
* 4p-a-litre increase by August bank holiday * 8% rise predicted by Jan 2011 * Record-breaking 125.9 per litre expected...
Petrol prices will go up this month, and are set to soar next year, it was predicted today.
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.'
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