AA: Diesel will continue to rise in 2010

Diesel motorists face a bleak start to the New Year with fuel costs set to continue increasing, AA Financial Services has predicted.

VAT rates will return to 17.5 per cent from their current level of 15 per cent, while chancellor Alistair Darling confirmed in the Pre-Budget Report that fuel duty will rise by 1p per litre each year for the next three years, starting in April 2010.

Based on current prices, the VAT hike will add around 2.4p to the cost of a litre of diesel.

As a consequence of these changes, director of AA Financial Services Mark Huggins said despite its efforts lobbying the government and the fuel industry, the cost of diesel will continue to rise in the future.

However, he pointed out that all is not lost for diesel motorists and that some bargains can still be found, saying: “Drivers can help themselves save a penny or two at the pumps by shopping around.”

Mr Huggins remarks come after the Road Haulage Association warned that high diesel prices could force some transport firms to pass costs onto their customers.

via AA: Diesel will continue to rise in 2010 – fuelcard news.

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