Fuel ready to rocket

HIGHEST unleaded . . . Royton’s Red Rose Service Station charges 125.9p a litre

FUEL prices have reached record levels in Oldham — and are about to soar even higher.

A cross-borough poll by the Chronicle found unleaded as high as 125.9p a litre and diesel at 129.9p a litre.

Comparison website petrolprices.com has the highest unleaded in Oldham at 129.9p a litre and the highest diesel at 133.9p. It records the lowest as 119.9p for unleaded and 123.9p for diesel with them averaging 123.17p and 127.63p respectively.

But on Tuesday, VAT on fuel will rise by 2.5 per cent to 20 per cent and combine with a 0.76p increase in duty to push pump prices up by around 3.5p per litre.

And recent increases in the cost of crude oil are also expected to be passed on to consumers with oil prices in New York increasing to more than $93 a barrel and freezing conditions in America expected to push it beyond the $100 mark.

Two years ago, Oldham’s hauliers staged a go-slow convoy through the borough in a protest against soaring fuel prices when they reached 117.5p for unleaded and 131p for diesel.

The Conservatives have previously pledged to introduce a “fuel duty stabiliser” to cut taxes on petrol when oil prices are high.

But the coalition Government hasn’t introduced the policy and ministers will be under pressure to help motorists. The tax rises are expected to give the Treasury a windfall of at least £500 million this year.

The AA says a typical family with two cars will find its annual petrol costs rise by £104 to more than £1,700.

A spokesman said: “Motorists have got to accept 3.5p on a litre in the New Year with the prospect of further bad news to come from the oil markets and tax rises. It is going to be an expensive year unless we get good news from the markets.”

Britain has the tenth highest unleaded price in Europe and the second highest diesel price.