PETROL prices could hit 142p a litre if Rachel Reeves presses on with fuel duty plans in the Budget, the AA has warned.
UK fuel duty has been frozen since 2011 thanks to The Sun’s Keep It Down campaign.
An additional temporary 5p per litre cut has also been in place since 2022.
It was introduced almost four years ago in response to the rise in oil prices following Russia’s invasion of Ukraine.
Cutting the temporary measure has been floated as one of the ways that Chancellor Rachel Reeves could target Brits’ pockets in the upcoming Budget.
But if the temporary 5p per litre cut to fuel duty expires then it would cost households a huge £7.3billion by 2029.
The AA has now said the 5p measure is the only factor preventing current pump prices returning to the “worst levels UK drivers endured before Covid and the Ukraine War”.
Before then, the historical records for average UK pump prices stood at 142.5 a litre for petrol on 16 April 2012 and 147.9p a litre for diesel on 12 April 2012.
The motoring group said without the fuel duty cut, current fuel prices would average 142.2p a litre for petrol and 150.6p for diesel.
The warning comes as average pump prices across the UK have risen to their highest since March.
Petrol now stands at 136.2p a litre, having last been at this level on 20 March.
Meanwhile diesel now averages 144.6p a litre, returning it to the level seen on 17 March.
Jack Cousens, the AA’s head of roads policy, said the recent increase in pump prices has put the national averages for petrol and diesel on a “knife-edge”.
“Some of that extra fuel cost is being generated by the persistence of the pump-price postcode lottery, where local rivals match each other’s prices in a cosy relationship that leaves drivers in the ‘wrong’ towns paying £2 to £4 more for a tank.”
The Sun has contacted The Treasury for comment.
How YOU could be affected
While speculation is rife, there is no way to know for sure which measures the Chancellor will announce in the Budget on November 26.
‘There’s no escape from Reeves’ Budget hit and run on drivers’
Former Top Gear presenter Vicki Butler-Henderson tells Sun readers why they need to buckle up ahead of the Budget
RIGHT now, Chancellor Rachel Reeves is shining her full beam on drivers ahead of the autumn Budget.
It’s time to buckle up and pull our seatbelts tighter, as she’s setting our sat navs to destination: ‘Costa Lotta’.
The government is eyeing up a £100 a year increase to fuel duty.
The cost has been kept low for fifteen years, thanks to the The Sun’s ‘Keep It Down’ campaign and work of FairFuelUK.
But if the temporary 5p per litre cut to fuel duty expires, then it would could households a huge £7.3billion by 2029.
And if you think you can swerve it by switching to an electric car, then it’s painful to hear that the government is plotting a pay-per-mile charge for those drivers.
Electric cars could be charged between 3p and 9p for every mile driven, depending on how much they weigh.
Notably, the average plug-powered motor is 2,200kg, which is around 300kg heavier than a car with a traditional engine – and no, there’s no government logic or plan to ring-fencing this exclusively for pot hole repairs.
Unfortunately I don’t have the answer to the government’s golden goose, but I’d like to suggest the headlights move away from motoring and onto the world of high-tech and AI? Fingers crossed.
However, research has warned household budgets across the country would be drained by a staggering £7.3billion in total by 2029 if the temporary 5p-a-litre cut expired.
Prices would be pushed up for everyday goods such as food and energy costs in another cost-of-living blow.
The analysis by the Road Haulage Association warned households will be hit by £360 between now and 2029.
Drivers of electric cars are also rumoured to be targeted.
EV drivers may be forced to pay new levies so they pay their fair share of tax as they don’t pay fuel duty at the pump.
Proposals being looked at by the Treasury include a tax on the weight of the car or a pay-per-mile system.
Electric cars could be charged between 3p and 9p for every mile driven, depending on how much they weigh.
Tips to save on fuel
Making sure you are comparing prices and finding the lowest is essential for cutting spending on petrol.
You can search for the cheapest local pumps using petrolprices.com which should provide up-to-date figures.
All you need to do is pop in your postcode to see what prices are like near you.
Loyalty schemes are another way of making filling up cheaper.
Nectar members can shave up to 5p a litre off the cost of petrol.
While Clubcard members at Tesco stations earn one point for every two litres of fuel purchased.
You can also use Clubcard points to pay for fuel at Esso stations to help your money stretch further.
Keeping an eye out for advice on cheap petrol on social media is also wise, especially on local community groups.
