Petrol prices will go higher in UK

After oil hits its highest price this year, the motorists will suffer from petrol price rise by 15p per gallon.

The price of the crude oil was $79.05 a barrel, which will ultimately increase the fuel price by 4.5p. More 10.5p would be added as tax, when VAT increases to 17.5% at the end of this year.

A spokesman for the Automobile Association (AA) said that one thing is sure and that is that the drivers or consumers will face increase in the oil price and even the VAT will increase.

According to the Analysts at Goldman Sachs, costs of oil would be $85 per barrel by the end of this year. The price would be doubled, compared to the price, early this year.

The trading currency is putting more pressure on wholesale cost of fuel for buyers in UK. According to the AA, if the fuel prices in US will be $80 a barrel, then this will add £1.80 to the cost for filling a petrol car in UK. One more fuel duty of government will also cause the rise in fuel price and this duty will come into action in April.

The analysts said that, the optimism about the global economy is the reason for the price rise. The ideal way to combat this situation would be through fuel cards. Big companies that use a large fleet of vehicles can incorporate the use of fuel cards that would offer systematic working and ensures a bit of savings on the budget too.