Motoring organizations are warning that the UK is poised for a "winter of discontent," as road fuels hold at record high levels ahead of an increase in tax and duty at the beginning of 2011, sources said Wednesday.
VAT across the country is due to be raised from the current 17.5% to 20%, as the coalition government seeks to balance massive borrowing during the near-collapse of financial institutions, while fuel duty is set to increase to nearly 59 p/liter.
"The winter of discontent for hauliers probably started a long time before September," a spokeswoman for the Road Haulage Association said Wednesday, but the duty increase is likely to affect car users more than hauliers.
"[Hauliers] with the VAT increase, they can claim that back anyway, but the duty increase will hit general motorists. It may make them sit up and take notice," the spokeswoman continued.
Retail fuel prices across the country currently average 123.91p/liter for gasoline ($7.21/gal) and 127.97p/liter for diesel ($7.44/gal).
Resurgent crude prices have underpinned the strength in road fuel prices, with the front month ICE Brent contract trading just under $94/b as of 13:15 London time.
That helped propel the price of gasoline to hitherto unseen levels earlier this month, with the bulk of the UK's road fleet still driving on that road fuel.
Diesel road prices remain slightly below the peaks seen in the wake of crude's rise to close to $150/b in mid-2008.
--Tim Worledge
VAT across the country is due to be raised from the current 17.5% to 20%, as the coalition government seeks to balance massive borrowing during the near-collapse of financial institutions, while fuel duty is set to increase to nearly 59 p/liter.
"The winter of discontent for hauliers probably started a long time before September," a spokeswoman for the Road Haulage Association said Wednesday, but the duty increase is likely to affect car users more than hauliers.
"[Hauliers] with the VAT increase, they can claim that back anyway, but the duty increase will hit general motorists. It may make them sit up and take notice," the spokeswoman continued.
Retail fuel prices across the country currently average 123.91p/liter for gasoline ($7.21/gal) and 127.97p/liter for diesel ($7.44/gal).
Resurgent crude prices have underpinned the strength in road fuel prices, with the front month ICE Brent contract trading just under $94/b as of 13:15 London time.
That helped propel the price of gasoline to hitherto unseen levels earlier this month, with the bulk of the UK's road fleet still driving on that road fuel.
Diesel road prices remain slightly below the peaks seen in the wake of crude's rise to close to $150/b in mid-2008.
--Tim Worledge
