Motor car insurance policy holders are in for even more hard times this coming year, as industry experts predict fuel prices will rocket skyward in 2012.
Price increases to 140p a litre will most likely hit by this summer for motorists who own petrol powered vehicles. Meanwhile, anyone with a discount car insurance policy on a diesel-powered car or van will watch their prices increase to 145p per litre, according to EnergyQuote, an energy broker that published the new price forecasts.
Prices will rise, according to Damien Cox, lead analyst for EnergyQuote, most notably in August in the wake of the fuel duty increase. Mr Cox also said that there will be a marginal increase in oil prices this year as well, something that could spell disaster for car owners already paying through the nose on their car insurance rates.
August’s peak for petrol prices will be approximately £139.26p per litre. Diesel fuel prices will rise even higher to £145.89p per litre, but Mr Cox predicted this record high to be reached in October of this year.
Fuel tax reforms are needed to combat the price increases, according to industry experts such as Brian Madderson, RMI Petrol chairman. Mr Madderson wrote a letter to the Chancellor, stating that the current levels of fuel taxation were penalising commuters, working families, rural communities, and businesses.
The chairman for RMI Petrol called for new thinking and change on fuel taxation in order to provide Brits with a much needed boost to the economy and society in general. Mr Madderson predicted August’s fuel duty increase will be as high as 4p a litre.