PETROL and diesel increased by 2p a litre/9.09p a gallon from 6pm on Tuesday, although the Chancellor of the Exchequer introduced a 1p a litre incentive for ultra low sulphur petrol from October 1, 2001 and froze duty on road fuel gas for another year.

PHH Vehicle Management said the 4% in real terms rise would add £60.60p to fuel bill of a 30mpg company car clocking up 20,000 miles a year and £45.44 to the fuel bill of a car averaging 40 mpg.

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