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Petrol prices 'set to increase'

UK petrol prices have for the second month running fallen by more than 4p a litre, the AA said. But the driving group also warned fuel duty is due to increase again by 3p litre on August 1.

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AA warns of petrol price hike

"It is of course excellent news that a two-car family's petrol costs have fallen £9.83 in the past month and £18.49 since the record high in April, but could the price crash have happened more quickly, as it did in Europe?

Pump price transparency, a key campaigning goal for the AA over the past seven years, could have ensured that the £4.5 million-a-day switch of consumer spending from pump to high street boosted other businesses and lowered inflation far sooner.

However, drivers must brace themselves for another hike if the Treasury's threatened 3p litre duty increase goes ahead on 1 August."

– AA president Edmund King

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