By Christopher Leake
Last updated at 2:06 PM on 2nd January 2011


Motorists will be hit by three fuel price rises in the early part of 2011 - sending the cost of petrol soaring by at least 7p a litre.

In addition to VAT and fuel duty increases this week, there will be another rise in fuel duty in April.

The combined 5.6 per cent hike - almost twice the rate of inflation - is entirely due to measures being imposed by Chancellor George Osborne.

The combined 5.6 per cent hike -- almost twice the rate of inflation -- is entirely due to measures being imposed by Chancellor George Osborne.

Happy New Year? The combined VAT/fuel duty 5.6 per cent hike is almost twice the rate of inflation

And forecourt charges could go up even further if volatile oil prices climb higher than the current $90 a barrel.

Motoring and haulage bosses attacked the latest increases, which come on top of rising mortgage rates, higher National Insurance and frozen child benefit payments.

The AA said the fuel price increases would force lower-paid motorists off the road and mean that volunteer drivers ferrying patients to NHS hospitals would be unable to afford to fill up.

Spokesman Luke Bosdet said: 'When you combine the 3.5 per cent increases from the fuel duty and VAT rises this week and those when more fuel duty is added in April, it will put 7p on a litre of unleaded petrol.

'Low-income drivers, youngsters with their first job who live at home, and part-time workers having to drive to work will be hit hard.

'There will also be a knock-on effect on the leisure industry, hotels and restaurants because motorists will not be able to afford to go out as much.'

The Freight Transport Association said lorry drivers had been paying an average of 3,800 more on fuel in 2010 than in 2009.

It said this month's tax rises alone would add another 1,200 to annual diesel bills.

Responsible: The hike is entirely due to measures imposed by Chancellor George Osborne

Responsible: The hike is entirely due to measures being imposed by Chancellor George Osborne

Barry Proctor, whose haulage firm is based in Stoke-on-Trent, Staffordshire, said: 'This is a huge blow to the haulage industry.

'We've had horrendous weather over the last few weeks, but yet again this industry has managed to deliver Christmas, unlike an awful lot of other industries that failed their customers miserably.

'And instead of a pat on the back from George Osborne, it's another body blow.'

A poll by car supermarket Motorpoint found 67 per cent of drivers oppose the VAT rise.

'Further increases at the pumps as a result of tax rises are bad news for consumers,' said managing director David Shelton.

Industry experts say the January tax increases will add 3.5p to the cost of a litre of petrol and diesel.

The average price of a litre of unleaded stands at a record 124.16p, compared with 107.74p at this time last year.

The fuel row came as desperate High Street retailers - themselves being forced to absorb the rise in VAT from 17.5 to 20 per cent from Tuesday - tried to lure consumers into a New Year spending spree with some prices cut by up to 70 per cent.

Despite the huge discounts, shops have failed to recoup the losses suffered as a result of heavy snow before Christmas.

Yesterday, retailers reported steady trading, but New Year's Day is rarely a major retail event.

High Street and shopping centre bosses are hoping to attract many more customers today and tomorrow.

Most retailers say they will absorb the VAT rise until they have sold off old stock.

But once new goods are delivered, consumers will feel the impact. The VAT rises will add 158 to the average family's household bill.

On Friday, Labour urged a rethink of the VAT rise.

But last night sources close to Mr Osborne made it clear that the increase - expected to raise 13billion in the next 12 months - would go ahead.

Here's what readers have had to say so far. Why not add your thoughts below, or debate this issue live on our message boards.

The comments below have been moderated in advance.

Who voted these *insert expletive* in?? Come on, own up.

Report abuse

When the climate change tax is put on fuel the price increases happening now will be tiny in comparison. Expect to pay 3 a litre in the future

Report abuse

before we start on about riots lets see how the americans come off first as they are close to that point already with their military style policing policies who will be armed that is one of the reasons that several more prisons are being built so as to cope with the impending uprising, and have no illusions about it the same will happen hear, if you are a true English person you know that when are backs are against the wall as a nation we always come out best our history in these matters have proved this over and over again yes money is tight and times are hard but anywhere else in the world you have to pay for things that we take as our right the time i know that things are bad is when the ladies nail bars start to close and people would rather put food on the table rather than buy a packet of cigaretes.

Report abuse

We all have a choice, to keep on paying or make an effort to raise cain and make Osborne consider reducing the amount of tax on petrol and diesel, presently about 70p on every litre. However, since the government rakes in billions from this tax that move is most unlikely. Perhaps the way to deal with this is only to buy the amount of petrol or diesel you need each week and make a concerted effort to reduce or cut out all short distance runs, for example, children to the local school, going to the ships less than a mile or two away.

Report abuse

So much for the "End to the war on motorists" as voiced by Cameron in the days before the Election and when he said anything the general public wanted to hear. So.. is this yet another load of inconveient pledges which have been binned after getting elected, or is it another deliberate "U" turn then, Dave...?!! Either way, we're getting shafted. . . again. Grrrr....

Report abuse

When will it ever STOP ,the poor moterist of united kingdom is paying enough in taxes it is about time we the car user said enough is enough .Its ok when people like the rac, and AA coment on these issues ,what it needs is somebody with a little backbone to bring this country 's driveing and fuel prices back to some kind of reality .

Report abuse

The views expressed in the contents above are those of our users and do not necessarily reflect the views of MailOnline.