Fears that EU ruling will add 4p on petrol

Motorists today faced the prospect of a new "green" fuel drive by the European Union that could slap 4p a litre on petrol and diesel.

It would mean drivers would pay the price of a new quota on the amount of fuel from environmentally friendly sources to be sold in the UK.

Under a Brussels directive issued, one in every 10 litres of fuel sold would be made up of sustainable alternative biofuels rather than fossil fuel like petrol by the end of the decade.

It is feared this will have a significant impact on petrol and diesel costs when world oil prices are already rising relentlessly.

Critics have urged David Cameron and Chancellor George Osborne to contest the plans.

Peter Carroll, of the FairFuel UK campaign, said: "Many of our supporters have the environment at heart but the priority has to be to keep the cost of petrol down because that is what the economy needs."

Robert Oxley, of the TaxPayers' Alliance, said: "This is just another example of how Brussels is out of touch with the priorities of ordinary taxpayers."

This is insanity. This stupid directive would force the Treasury to put another 3 or 4p on a litre

The Prime Minister was understood to be "acutely aware" of the worrying implications of the EU hiking the cost of fuel.

Senior Tory ministers fear the move may trigger an angry backlash from motorists and could even lead to fuel protests bringing the country to a halt.

But the measure is bound to intensify criticism that diktats from Brussels are massively increasing the cost of living for British consumers and could even damage the UK economy.

Biofuels come from a range of sources including plants, fermented organic matter, bacteria and chemical processes.

EU officials claim the targets will reduce dependency on oil-based fuels which are blamed for pollution.