Price hikes to be aware of in 2011

30 December 2010

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It's hard to predict how much petrol prices will go up as the raw commodity price varies. But we do know that petrol prices will increase by 0.76p per litre (around 1p with VAT included) in January, owing to the levy increase announced in the previous budget.

The AA estimates that the VAT hike means a further 3p can be added to this, so petrol will cost roughly 4p more per litre, which means that filling up the average 50-litre car every two weeks will cost an extra £250 a year.

Energy prices

The Bank of England has forecast energy price rises of 5% in early 2011. Rising wholesale prices will force suppliers to push up their retail charges, meaning our electricity and heating bills will once again be on the up.

A number of the big energy companies have already put up their prices, npower being the latest. Its increases of 5% will see its average dual fuel bill customer pay £65 more a year.

Train fares

Train tickets will be 6.2% more expensive in the new year, according to the Association of Train Operating Companies.

The Office of Rail Regulation forecasts that the average price of a single journey will increase from £4.89 to £5.19.


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