On Wednesday, Chancellor Alistair Darling revealed budget plans for 2010 to the House of Commons. In it they decided, instead of introducing the 3p fuel duty increase all at one time, they would stagger the rise over the year. This is mainly due to the recent hike in the price of petrol.

The fuel duty increase of 3p was due to be effective on April 1. However, now they will only introduce a 1p per litre rise, which will typically increase the cost to refill a car by £38 a year. Then they will introduce another 1p increase on October 1 and a 0.76p rise on January 1, 2011. Darling also said that they want to remain committed to the fuel duty escalator and will increase the duty every year by 1p per litre until 2014.

Campaigns from motoring groups have tried to get the increase shelved because of the struggling economy failing to recover – not to mention the rise in wholesale petrol costs. During the week, central London fuel prices reached £1.20 per litre, while residents in rural areas are facing even hire prices. Families are having to pay an extra £50 in petrol costs every month already due to the hikes.

In July 2008, the UK hit is record average high for unleaded fuel at £1.20 as well. At the time, crude oil prices across the globe were at a record high as well – $150 per barrel (petrol is priced in American dollars). However, prices are at the same level, but crude oil is only $80 per barrel.

Experts believe that motorists will be relieved to know that they won’t have to face a 3p fuel duty increase all at one time. However, their satisfaction will be short-lived when the prices continue to increase.