Tax rise could take diesel beyond £1/litre

Date: Monday, October 1, 2007

The two pence per litre fuel duty rise could push the price of diesel close, if not over, a pound per litre. The rise, announced in then-chancellor Gordon Brown's April budget, took effect from 1 October and will be followed by another 2p/litre rise next April and 1.84p/litre in April 2009.

The average price of a litre of diesel in the UK before the tax rise was 97.0p, with unleaded at 95.3p, according to fuel card provider Arval.

The move has reinforced Britain's position as the country that takes the most duty per litre in Europe at 50.35p, compared with a European average of just 22.7p.

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