Families could see the monthly cost of fuel rise by £17 compared to the beginning of the year, predicts the AA.

The Automobile Association (AA) is warning of a surge in petrol prices and is calling on the UK government to scrap the impending 3p rise in petrol duty due to come in on 1 April 2010.

A 17% rise in European wholesale petrol prices since the end of January is threatening to push the average pump price above the July 2008 record, says the AA.

Petrol prices have already begun edging towards 116.9p a litre across forecourts, but the AA warns they could reach 120.0p by the end of the month, rising to record highs unless the government reneges on the 3p a litre fuel duty rise on 1 April.

President of the AA, Edmund King, said: “The UK is barely out of recession yet petrol prices threaten to rise to record prices seen during the boom of 2008 – shortly before the collapse into recession. If families, drivers on fixed incomes and those on low pay were unable to cope with record prices then, they are even less likely now.”

At the beginning of the 2010 the RMI Independent Petrol Retailers Association predicted a gloomy year for drivers with the possibility of a 10 pence per litre price hike by the end of the year. This figure was seemingly relatively conservative as it did not take into account the rising price of oil.

“It’s going to be a tough year for both consumers and independent petrol retailers in 2010 and both are really going to feel the squeeze,” commented Chairman Brian Madderson. “RMI Petrol will be actively lobbying Government to minimise the tax increases in order to protect the vulnerable rural filling stations and maintain the momentum of any economic recovery.”

According to the AA, the UK suffers from some of the highest petrol prices in Europe. Since the pre-budget report in November 2008, fuel duty and VAT on a tank of petrol in the UK has risen by 11.46%, compared to an average rise in countries including France, Germany and Holland of just 5.07%.

Mr King added: “Political parties have started to jump on the bandwagon of high fuel prices, calling for a fuel price/tax stabiliser. In the AA’s opinion, the easiest and quickest stabiliser would be to freeze the fuel duty increase on 1 April.”