UK petrol prices to reach £5 a gallon

Cash-strapped Britons will have to face mounting fuel bills in the run-up to Christmas as the cost of petrol is likely to hit 110p a litre or £5 a gallon.

The price rise will represent an increase of more than a quarter from last year.

Government's planned 2.5 per cent increase in VAT from the start of next year will bring more misery to the UK's motorists.

Experts have predicted that soaring fuel bills will curb people's spending in the Christmas season.

Speaking his mind, John Franklin, a spokesman for RAC, said, "With the £5 a gallon mark expected to be hit before Christmas, many families are likely to think twice about visiting family and friends."

Many organizations have blamed oil companies for being quick increase prices when the crude oil jumps and slow to lower them when crude oil falls.

Meanwhile, rail companies have also announced an increase of 1.1 per cent in rail fares from January.