Petrol prices to top £1.10 a litre by Christmas

Tue Nov 17 2009 17:00:20

Motorists are being warned they can expect to pay more than £1.10 a litre for petrol in the run-up to Christmas.

Experts are predicting unleaded will cost the equivalent of £5 a gallon over the festive season. That's the highest price since September 2008.

Motoring groups have reacted angrily to news of the hike. They point out that petrol prices have risen by 26 per cent already this year, despite the cost of oil actually falling.

The misery is set to continue into the New Year, with the Government putting VAT back up to 17.5 per cent from 15 per cent.

The Chancellor currently takes around two-thirds of the price we pay at the pumps in tax.

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