Petrol prices set to hit £1.30

Petrol will soar to an average of £1.30 a litre in January, figures suggested today.

Crude oil prices jumped 44 cents this week after the recent sub zero temperatures sent demand soaring.

Fuel duty rises will add another 0.76p a litre on January 1, and will be made worse by the rise of VAT to 20 per cent a few days later.

A two-car family will pay an extra £104 a year, the AA said. Spokesman Andrew Howard said: "It is going to be an expensive year."