Fuel prices rise today

Fuel prices are on the rise again after a delayed tax increase came into effect today.

The extra 2p-a-litre in fuel duty was delayed from last year, due to high oil prices and the effects of the recession.

Prices have risen throughout 2009
Average fuel prices currently stand at 105p per litre for unleaded and 106p for diesel.
As of the end of August, the UK had the 2nd highest price for diesel in Europe, and the 11th highest for unleaded.

Fuel prices remain lower than at this time last year, but they have risen steadily since hitting a 2-year low at the beginning of the year. In January 2009 the average prices were 86.6p-per-litre for petrol, and 98.7p for diesel.

More rises expected
A further 1p-per-litre rise is predicted for April 2010, and the Chancellor, Alistair Darling, has said he expects increases of 1p a year above the rate of inflation for the next four years.

The increase comes as funds for the Government scrappage scheme start to run low, and three months before VAT reverts back to 17.5% in January 2010.

There are concerns that the rise could be counter-productive in helping the country emerge from recession.

AA president Edmund King said: 'This fuel duty hike will mean that 67p out of every pound will go straight to the government in tax. Fuel is now taxed as a luxury at a higher rate than even Champagne. The Government risks killing off any green shoots of recovery by hiking fuel prices.'

Morrisons has announced it will freeze the price of fuel at its supermarket pumps until September 6.