Car and Rail Travellers Face Large Price Rises

The New Year has ushered in large price rises for travellers as rail fares increase by 6.2% and fuel duty and VAT increases hit motorists hard.

Travellers could be forgiven for feeling hard done by as the costs of travelling by car, rail, bus and underground are all rising as 2011 gets underway.

Average rail fares have increased by an average of 6.2%, although some mainline season tickets have risen by 13% which is around four times the rate of inflation.

These above inflation fare increases are part of a government strategy to force the passenger to pay a greater percentage of the costs of providing rail services and infrastructure.

Previously the costs of rail transport have been shared equally between the passenger and the tax payer, however this balance is to shift to reduce the burden on the tax payer.

“The money raised will pay for more trains to address overcrowding, better stations and quicker journeys,”, Says Mr Roberts, The chief executive of the Association of Train Operating Companies.

Travellers using the underground and busses in London will also face fare increases of around 6.8%.

Petrol and diesel costs are climbing as fuel duty increased by 0.76p per litre on Sunday. This is the fifth ride in two years and now means that motorists now pay 58.95p per litre in fuel duty.

VAT is added to the fuel duty and will also rise by 2.5% to 20% on 4th January. These will combine to add another 3.5p per litre, taking the cost of a litre of petrol to record highs.

The fuel duty and VAT increases on petrol and diesel will cost the average family more than £300 per year.

There is unlikely to be a respite for motorists this year, however, as there is another 1p per litre hike in fuel duty due in April and oil prices, currently at around $90 per barrel has been forceast to reach $120 per barrel, which will force the price of petrol and diesel up further in the months to come.