Chancellor Alistair Darling will fulfill a commitment made in the last Budget, pushing fuels costs, particularly diesel, over the £1 per litre mark. It will also be the first above-inflation rise since 2000.
Also announced in the March Budget were further duty increases in 2008 and 2009.
Stephen Joseph, executive director at Campaign for Better Transport, said: “We want to see the revenues from this fuel increase ring-fenced for public transport and other measures that will give people real travel choices, in line with the commitment Gordon Brown made in the 2000 budget.
“Since 1997, the real cost of motoring has fallen while the cost of using public transport has risen. We welcome this rise in fuel duty if it is used to help level the playing field amongst transport options.”