Drivers must pay £344 under new Asda, Tesco, Morrisons, Sainsbury's rule next month

Raising fuel duty in the forthcoming Budget will lead to a spike in inflation, Chancellor Rachel Reeves has been warned. New Labour Party Chancellor Reeves is being warned not to raise fuel duty in the Budget as it would lead to a spike in inflation. Howard Cox, founder of FairFuelUK, said: “Fixing the foundations of the economy means not imposing needless tax levy rises on consumers, logistics, and small businesses.

Labour’s uncharacteristic but welcome electioneering mantra will be at huge risk if Fuel Duty is hiked." Mr Cox said: “If such a punitive act is in the Budget, it will not only increase inflation but also put many vital haulage businesses and sole traders on the brink of bankruptcy.” A Treasury spokesman said: “Following the spending audit, the Chancellor has been clear difficult decisions lie ahead.



” READ MORE UK set for -4C snow blast with five parts of country 'worst hit' The RAC estimates that the 12-month extension of the 5p-per-litre fuel duty will result in motorists saving approximately £3.30 each time they fill up, factoring in the impact of VAT. It means a driver filling up twice a week at Asda , Morrisons , Sainsbury's and Tesco - which is the UK average - face £344 charges a year.

Announcing the freeze in March, then Conservative Party Chancellor Jeremy Hunt said: "Cutting people’s tax bill, while protecting our public services, is a priority. We’re already saving drivers £50 a year and the average earner £900 a year – and if we stick to our plan, we will go even further, rewarding work and growing our economy." Energy Security Secretary Claire Coutinho said: "We will always stand by UK drivers and today’s fuel duty cut is just o ne of the ways we are keeping costs down for families.

Our plans for a new Pumpwatch will make sure motorists are getting a fair price at the pump. "To mark the extension coming into effect, the Financial Secretary to the Treasury Nigel Huddleston visited an Asda petrol station in Worcestershire where he met staff and saw the supermarket chain’s more fuel-efficient fleet of vans.".