Fuel News from Be Wiser

Angry Motorists Over Fuel Price ‘Bombshell’

Motorists face further rises in petrol prices after the Budget despite recent increases in the cost of fuel but a "cash for bangers" car-scrappage scheme was introduced to try to kick-start the motor industry.

Petrol prices, having been pushed up by around 2p with the 1st of September fuel duty increase, are now beginning to follow the traditional pattern of autumnal reductions.

The AA fears that without the Christmas incentive to compete on price and attract customers, retailers will allow fuel costs to keep rising.

Petrol prices are predicted to reach their highest ever level at £1.50 per litre by 2009, meaning motorists pulling onto forecourts will be forking out £84 on average to fill up their cars.

Motorists will face annual petrol bills of £2,637 a year - 14% of the average net salary in the UK of £19,167.98. The Government will reap 63% of the pump price through duty and VAT.

The AA described the rises as "an unexpected bombshell", while the RAC said the announcement was "a brutal blow for motorists" and the Freight Transport Association (FTA) said the increases "could be the death knell for parts of the logistics sector".

The AA has also commented ‘No-one was expecting another rise in September. This is a bombshell. More money will be raised from this than will be paid out in the car-scrappage scheme – which means that the scrappage scheme will be paid for in a year by motorists at the pumps.

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