Rise in fuel duty angers motoring associations and drivers across the UK.

The price of a litre of fuel has increased by two pence today (1 September) – the third rise in nine months – causing anger amongst drivers and motoring groups, who say that the rise has come at the worst possible time.

In the Budget in April 2009, Chancellor of the Exchequer, Alistair Darling, announced that fuel duty would rise by two pence on 1 September 2009, followed by a one pence rise each April for the next four years.

According to the comparison website uSwitch.com, the increase will cost drivers an additional £1 billion extra in the next year. The website also said that the burden is likely to increase as the price of oil and wholesale costs have soared in the last couple of months.

The rise has once again taken the average price of a litre of petrol to over one pound for both petrol and diesel according to website petrolprices.com.

Jo Tanner, Director of Communications at the Freight Transport Association (FTA), condemned the rise: “It’s at the worst possible time. For many companies and for many drivers it could be the end of the road.”

Ms Tanner explained how recent fuel duty rises have already had a devastating effect on the industry: “Since July 2009 the number of HGV drivers claiming job seekers allowance has gone up by 273% across the UK. The number of insolvencies in the logistics sector has increased by 50%.”

The increase in fuel costs is also playing a crucial role in influencing the type of car that is selling in higher volumes on the forecourt. uSwitch.com revealed last week (29 August), that one in three potential car buyers are looking to downsize their current vehicle, citing fuel efficiency as the most important factor when looking for a new car.

Mark Monteiro, Insurance Expert at uSwitch.com, commented: “Of those motorists who are in a position to afford a new vehicle, size and fuel efficiency have emerged as crucial factors when choosing a new car.

“Consumers seem to be solely focused on keeping the longer-term running and maintenance costs to a minimum.”