As motorists returned to work in the New Year they were hit by a double duty whammy of a fuel tax increase and the rise in VAT. Vicki Henderson looks at how the price rises have affected drivers as fuel costs hit record levels.

around the region.

FUEL campaigners have threatened to bring the country to a standstill again in protest at record-breaking price rises.

Motorists in some parts of the North-East and North Yorkshire are paying among the highest pump prices in the country.

The cost of filling the average hatchback’s fuel tank is almost £70, leaving hard-up families facing another financial headache.

And the fuel-cost double whammy is a big problem for hauliers and businesses.

Last night, Andrew Spence, who led fuel protesters in 2000 and 2005, warned that more protests are ahead.

The farmer and haulier from Consett, County Durham, said: “It’s not a question of if the protests will happen, it’s when.

“I’ve been inundated with calls from hauliers, taxi drivers and bus drivers who are all asking when we should start up again. It’s not possible to go on with the price of fuel rising as it is. It’s crippling the haulage industry.”

This week, Government-imposed fuel duty rose by 0.76p a litre and VAT increased by 2.5 per cent to 20 per cent, adding an extra 3.5p on the average price of a litre of petrol.

Prices around the region have now hit record levels, with some petrol stations charging 133.9p a litre for petrol and 136.9p a litre for diesel – totalling £6.25 a gallon.

A spokesman for the AA said the prices in the region show the extent of the crisis.

“I’ve never seen prices reach more than £6 a gallon before, except at a garage in London that serves chauffeurs,”

he said.

“The North is generally quite blessed when it comes to petrol prices because there are so many branches of Asda, which keeps its fuel prices low, which drags down the competiton.

“However, in rural communities, petrol will be much higher because garages tend to be independent and are unable to compete.”

The highest average prices for fuel are found around Northallerton, in North Yorkshire, where petrol prices average 128.04p a litre, and Durham, where diesel prices average 131.58p.

Prime Minister David Cameron gave a glimmer of hope to motorists after he indicated on Thursday that the Treasury is looking at the possibility of pegging fuel tax to oil prices.

Speaking at a factory in Leicester, Mr Cameron said: “Is there a way in which, when the oil price goes up, if the Treasury is getting more revenue out of that oil, can we find a way of sharing that risk with the consumer? Ie, if the price goes up, the tax comes down, and if the price goes down, the tax goes up.”

The proposition was welcomed by Brian McDowell, spokesman for the Association of British Drivers.

He said: “These price increases are wholly unjustified and the coalition is currently just carrying on where Labour left off.

“We agree that the Government should bring back a stabiliser, so that if oil prices increase then the tax element drops.

“At least that way we can get out of this system where price only increases.”