Rise in petrol prices hits motorists

Today`s VAT increase from 17.5% to 20% led to lengthy queues at petrol stations across the UK over the weekend, as motorists rushed to beat price rises.

With the average price of a litre of unleaded petrol standing at just over 124p at the end of last year, the VAT rise could add around 3p per litre - or £1.50 to the cost of filling a 50-litre petrol tank.

The VAT rise follows last week`s fuel duty increase, which added 0.76p to the price of a litre of unleaded petrol.

An expert at debt management company Gregory Pennington said that rises like this could cause problems for people already struggling with their finances.

"People may be able to manage a £1.50 increase in the cost of filling their tank easily enough, but it`s by no means a welcome increase in the current financial climate - and those already struggling could suffer.

"As much as anything, it`s a sign for motorists to assess their finances and make sure they have accounted for any increases in their costs. The best way to prepare for the year ahead is to plan out a budget and stick to it. And if you`re worried about how you`ll manage, get advice from an expert."

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Gregory Pennington offer debt advice and debt management plans, as well as a range of other debt solutions. If you are worried about debt, contact one of our expert debt advisers now.