Ahead of his Autumn Budget today, Chancellor of the Exchequer Jeremy Hunt is being urged not to raise fuel duty.
The RAC has reported that increasing fuel prices could push inflation even higher after it found an "extremely strong link" between the two. The warning comes after the Treasury cut fuel duty by 5p in March.
Mr Hunt is set to deliver the Autumn Statement on Thursday morning where he is expected to raise taxes and cut public spending as inflation hits a 41 year high.
Average pump prices hit a record high back in March at 199p for diesel and 192p a litre for petrol, but by July, costs had dropped to an average of 188p a litre for petrol and 196p for diesel.
However, the RAC reported that diesel prices rose by 10p a litre in October, while petrol was up by 4p.
Findings showed that petrol prices increased by 20p a litre since the start of the year while diesel jumped by 40p whilst inflation rose by 5.6 percent in the same time.
RAC fuel spokesman Simon Williams said: "When the prices drivers pay to fill up rise, inflation seems certain to follow. That’s something the Chancellor must recognise as he considers what action to take today.
"Unfortunately, going into the autumn pump prices have been increasing again which we fear will only put further upward pressure on the headline inflation rate."
He continued: "We therefore strongly urge the Prime Minister and Chancellor not to tamper with fuel duty, as doing so would force the millions of hard-working people who depend on their cars to spend even more on petrol and diesel, putting even more stress on already-squeezed household budgets."
Mr Hunt will announce the Autumn Budget at 11.30am on November 17 in his address to Parliament from the House of Commons.
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