BUDGET 2010: 2.76p fuel duty increase to be staggered
24 March 2010
The planned 2.76p increase in fuel duty, which begins next month, will be phased in to reduce impact.
The move, which could add more than £2 to the cost of refilling a large car, means duty will rise by 1p in April, 1p in October and the remainder, 0.76p, in January 2011.
Chancellor Alistair Darling said by the time the full duty increase comes into effect it should be in line with inflation.
Fuel duty will also rise by 1p per litre in real terms on 1 April each year from 2011 to 2014.
He also confirmed fuel duty will continue to increase again as planned from 2014, according to the fuel price escalator.
The decision follows a warning from AA last week that petrol prices were set to hit a record high of 124p a litre by Easter. The average price of petrol has shot up 4p a litre in the past month, reaching their highest level since July 2008, according to the AA.
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