Fuel prices have risen again and motorists are now paying an average price of 122.14p per litre for petrol and 126.19p for diesel. This is an increase of over 3 pence in the last month for both and an increase of almost 12 pence per litre from a year ago. This means that already cash strapped drivers are paying nearly £7 more than they did this time last year to fill up a tank.
The recent cold weather, which has disrupted fuel delivery along with the rising price of oil are though to be behind the increases. The price of oil has now broken through the $90 a barrel mark. City analysts are predicting that the price will reach $100 per barrel within months.
On top of this Britain's 31 million motorists are faced with two separate tax rises that will be introduced in the first week of January. On January 1st fuel duty will cause a penny increase in the price of petrol and then three days later an increase in the VAT rate will push prices up by a further 2.5 pence. All of this is likely to push petrol up to a record high of £1.25 per litre in the New Year.
If the price of oil continues to rise the government will come under pressure to implement a fuel stabiliser scheme to protect motorists.