Fuel prices are set to rocket by up to 10ppl in the coming months as oil prices rocket following bloodshed in Libya, according to warnings issued by RMI Petrol.
Brian Madderson, RMIP chairman, said: “Following the turmoil and violence in Libya over the past couple of days Brent crude oil prices have reached $110 per barrel. We predict that this rise will filter through to petrol forecourts over the next few weeks, leading to an estimated 5ppl increase by April 1.
“This is further bad news for motorists and forecourts as this increase looks set to coincide with the introduction of the previous Government’s ill-thought-out fuel duty escalator adding a further 5ppl at the pump – in total a 10ppl jump.
“The RMI once again urges the government to abandon plans to introduce this fuel duty escalator which will impact directly on inflation, businesses and consumers.”
Madderson added that windfall tax arising from North Sea Oil revenues and 20% VAT on increasing prices at the pump should provide adequate room for the Treasury to offset any further direct tax on the forecourts.
He said: “The Fair Fuel Stabiliser is a concept needing much further study and engagement with industry so is unlikely to be introduced in the March Budget.”