Fuel costs rise by 27 per cent in a year

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Latest figures have shown that the cost of petrol is around 27 per cent higher now compared with 12 months ago.

And with motoring costs steadily on the rise, the need for a great car insurance deal is more important than ever.

Figures release by the RAC show that the average cost of a litre of petrol is now 115p, compared with 90.7p a year ago.

According to the motoring group, it now costs £264 more a year to fill a tank.

Motorists have had to bear the costs of three tax hikes in the past 12 months, along with the rising cost of the wholesale price of fuel.

In April 2009, fuel duty rose by 1.84p, and it rose again by 2p last September.

Then on January 1 this year, VAT increased by 2.5 per cent, causing a further increase of around 2.5p a litre. To further add to the misery for motorists fuel duty is set to rise on April 1 by inflation plus 1p.

RAC motoring strategist Adrian Tink said: "The tough year for motorists continues unabated with petrol prices constantly spiralling upwards. The extra cost of filling up is making a huge dent in already-stretched family budgets.

The Government needs to take a close look at the proposed fuel duty rise in April. When this was announced in last year's Budget, petrol prices were well below the £1 a litre mark."

Copyright © Press Association 2010

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