Fuel prices on the up
The Treasury has announced that fuel duties will rise by 1.28p per litre from October 1st.
The increase will add around 5p a gallon onto petrol and diesel prices.
The Treasury said the increase was in line with inflation and had been postponed for six months in this year’s Budget because of the international uncertainty over the impending war in Iraq and volatile oil prices.
Oil prices have now become more stable, the Treasury announcement.
Yesterday, the oil producers’ cartel OPEC said it was to cut production by 900,000 barrels a day.
Massive protests in 2000 forced the Government to abandon the “fuel price escalator”, which had sent petrol and diesel prices soaring.
Fuel duty was cut in the 2001 Budget and has remained frozen until now.
The freeze on duty has cost Mr Brown £1.8 billion, the Treasury said.
