Motorists can't afford Budget tax hike, AA warn

Motorists can't afford Budget tax hike, AA warn

The cost of a litre of petrol has increased by almost 3.5c in the past month, according to analysis from the AA.

This has led the average cost of a litre of petrol to rise to 144.7c nationwide.

Meanwhile, diesel car owners are also paying more at the pump as a litre of diesel has climbed by almost 3c to a current level of 134.4c.

After the attack on the Saudi Arabian oil processing facility, prices were expected to rise and the AA say that it could have been worse for consumers.

However, they have warned against increased costs directed at motorists, namely in the form of an anticipated carbon tax.

“Carbon taxes are designed to ‘nudge’ consumer behaviour towards alternatives,” explained the AA's Director of Consumer Affairs Conor Faughnan.

“When you don’t have alternatives you don’t get the switch but you do get lots of extra tax money from consumers. I’m afraid its very cynical of the government which understands this point perfectly well.”

According to the AA, over 60% of the cost of a litre of petrol is currently made up of taxation, with over 55% of the cost of a litre of diesel consisting of tax.

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