Petrol prices soar to four year high and new tax change will cost YOU £160 more annually
Prices for petrol and diesel have soared to a four year high in the UK and a new change to fuel tax could cost drivers an extra £160 annually.
This follows the news that petrol and diesel costs have risen for the 10th consecutive month.
Chancellor Philip Hammond has sparked controversy after suggesting that the eight-year freeze on fuel duty could come to an end.
The reason for this the that it is costing the Government too much money.
Fuel duty has been kept at 57.95p per litre since 2011 for both fuel types and it has reportedly cost the Treasury £46 billion.
As a result of this, drivers have reportedly save around £160 a year.
Keeping the fuel duty in place could reportedly cost the Treasury a further £38 billion.
Speaking in the Commons he said: “For context this is about twice as much as we spend on all NHS nurses and doctors each year.”
Scrapping the freeze on fuel duty could also be done to release an extra £20 billion for an NHS spending boost, which could be released in the autumn budget.
Fuel prices have been rising as the cost of a barrel of oil soared to $80 causing the price of unleaded to increase to £1.30 a litre and diesel to £1.34 a litre.
Filling up an average tank for both fuel types costs in excess of £70 which is the highest is has been since July 2014 and almost £18 more than it cost to fill it up two years ago.
Howard Cox, founder of FairFuelUK, commented: “Mr Hammond is playing Russian roulette with his party’s electoral fortunes by threatening a duty hike on hard pressed drivers.”
Steve Gooding of the RAC Foundation said: “It wasn’t just a long, hot summer for drivers, it was also an expensive one with pump prices rising relentlessly to the four-year high we see today.
“The last thing tens of millions of drivers need is a jump in fuel duty. A hike won’t just hit motorists.
“Fuel is a huge expense for many businesses whether they run cars, vans or lorries, and any additional cost will ultimately be passed on to consumers.
“Whether you drive or not you will pay the price as goods and services become increasingly dear.”
British motorists are some of the most heavily taxed in the world, which means this extra squeeze when it comes to fuel prices could see this increase.
Recent increases to car tax could add up to £500 on to the annual bill for drivers in the UK.
Quentin Wilson, a motoring broadcaster, said to the Daily Mail: “UK drivers already pay £40billion a year in motoring taxes for shocking Third World roads.
“Raising fuel duty with Brexit, oil at close to $80 and slow consumer spending is arrogant and reckless – and the way to lose the next election.
“Why doesn’t Westminster understand how important the road economy is to all our lives?”