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AA warns of £150 added cost of driving

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Thursday, 2 April 2009
Category: Fleet funding

The recent increase in fuel duty is likely to add £54 to a typical family's fuel bill each year, the AA has warned, with a potential £150 further to be added in the next 12 months.

The figures from the motoring group also point to the extent to which the cost of running a car fleet could rise, causing businesses further trouble during the already tight financial conditions.

A statement from the AA detailed how prices could continue to spiral after this year's £54 per family increase: "From April 1st 2010, following VAT's return to 17.5 per cent and an 'inflation + 0.5p' fuel duty rise this time next year, a further 4p a litre is likely to be added to the cost of petrol and diesel," it said.

In a survey of the views surrounding yesterday's (April 1st) price hike of 2.12p per litre, the AA discovered some minor (18 per cent) support for the increase.

Over 80 per cent, however, believed that the chancellor should either freeze or cut fuel duty.

It is likely the recent hike could increase demand for fuel-efficient cars this year, despite the recession adding strain to the car manufacturers' ability to produce the models they hoped to create.

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