Millions of motorists could be left worse off under a looming tax decision by Rachel Reeves as pressure grows on the Government to rethink plans to end the temporary fuel duty cut.
Experts have now urged the Chancellor to scrap the planned reversal of the 5p fuel duty reduction coming in this September, warning the move would pile fresh costs onto both petrol and electric vehicle drivers.
The call comes as global energy prices surge following rising international tensions, pushing up the cost of both oil and gas and threatening higher bills for motorists across the UK.
Experts warned the change would mean drivers would start paying more at the pump, just as market pressures are already pushing fuel prices higher.
Auto Express argued the Government risks delivering a "double blow" to drivers if it allows the duty cut to expire.
Global instability is already feeding through into energy markets. Recent US-led military action in Iran has disrupted supply chains and pushed crude oil prices to around $80 (£60) per barrel.
Gas prices, which heavily influence electricity costs in the UK, have also been climbing, raising concerns that households and motorists alike will soon feel the impact.
At current oil prices, petrol could increase by a penny or two from the present UK average of about £1.34 per litre.
Chancellor Rachel Reeves has been urged to scrap the fuel duty hike in September
| PAThere are also fears that costs could climb much higher if tensions worsen. Oil surged to around $114 (£85) per barrel during the early stages of the war in Ukraine in 2022.
Electric vehicle owners face rising electricity costs that could make charging more expensive, especially for those who cannot charge at home.
However, drivers using cheaper overnight tariffs may only see small increases in their costs, experts noted.
The situation is particularly difficult for drivers who rely on public charging points, which are often already significantly more expensive than charging at home.
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Global factors have led to the changing fuel prices
| PAAuto Express warned the combined impact could leave households with less money to spend elsewhere, adding further pressure to an already fragile economy.
Tom Jervis, consumer reporter at Auto Express, said motorists have already faced years of disruption to fuel costs and electricity prices.
He said: "UK motorists have had a turbulent time of it in recent years. From the electric-car switchover with its ever-moving goalposts to pothole-plagued roads, car-finance scandals and the fuel-price rollercoaster. It seemed like things were complicated enough, and then global politics dealt another horrible hand."
Mr Jervis acknowledged that the challenges facing drivers are minor compared with those faced by those living in regions affected by conflict.
Petrol and diesel prices are likely to increase after the fuel duty freeze is axed | PA"Fuel costs impact the whole economy, and the last thing any of us needs is another shock to the system at a time like this," he added.
Alongside keeping the fuel duty cut in place, Auto Express has also called on the Government to reduce VAT on public electric vehicle charging.
Currently, drivers who charge at home pay five per cent VAT on electricity, while those using public chargers pay 20 per cent.
It argued that cutting VAT on public charging would make electric vehicles more affordable for people who cannot install chargers at home.