AA warns of hike in fuel prices

The aa has urged the Government to shelve next month's hike in fuel duty after warning that motorists face a new upswing in pump prices.

The motoring organisation said plans to add 1p to petrol and diesel prices from 1 October would come at a time when the cost of crude oil and a weaker pound threaten to put additional upward pressure on motoring costs. January's increase in VAT to 20 per cent is set to compound the misery for motorists.

While the AA said average UK pump prices fell for the fourth month in a row during the last month, the wholesale cost of petrol was up 2p a litre since August and drivers were still paying £4.36 more per tank compared to a year ago. Across the UK, London remains the most expensive area for petrol at an average of 116.2p a litre.