Fuel is set to jump to its highest price since Sept 2008 and to top that the New Year Vat increase will see a further 2.5% added to the price when the rates go back to 17.5%. It is estimated that the average price to fill a tank is now over £60.00 compared to approximately £50.00 this time last year.
Fuel prices rocketed last year due to the ‘oil crisis’ a barrel of oil jumped to $100 a barrel, this resulted in high fuel prices of £1.30 for a litre of diesel and £1.10 for petrol. The price of a barrel of oil at present is only $80 leaving a question mark over the fuel increase.
The consumer website petrol prices have calculated that the cost of filling up an average family car with unleaded fuel will be £60.50 this December. AA spokesman Luke Bosdet said: 'To the average driver, this is madness. Why are prices in an oil glut not falling rather than soaring to levels never seen before at this time of year? 'We've got massive surpluses of oil, but it is being stockpiled at near-record levels to keep the price up. The oil companies are profiting from the high price, but the motorist is losing out. With less money in their pockets this Christmas, they will spend less at the shops and businesses will suffer.'