Drivers 'put off road' by petrol hike

The tariff increase may not sound like much, but it would make the cost of filling the average car £1.50 more expensive in total.

With local drivers already paying the highest petrol and diesel prices in the UK, some worry the hike will put them off the road if it is enforced in the new year.

During a debate on the issue at Westminster on Tuesday, Ian Paisley MP branded the increase "scandalous" and said it is affecting local business.

"The average cost of a litre of petrol in the UK is 134.5p whilst in Northern Ireland it is actually 135.2p," Mr Paisley said.

Our business competitiveness is now being threatened by rising fuel costs

Ian Paisley MP

"There has been absolutely no leeway for our citizens and many people are simply losing faith in the current government's taxation.

"The rising fuel prices are affecting all areas of our society - agriculture, small business, private individuals, elderly and the young are all being crippled by soaring prices."

Andrew McCartney of Derry Taxis explained how the company has been affected by the rising cost of fuel.

"Every time you hear there's another fuel increase and at the minute, in terms of the economic climate, in terms of the competitiveness that's out there," he said.

"It just can't be passed on to the customer. I mean the vehicle obviously can't move without fuel, you've got rising costs with insurance, rising costs with maintenance of vehicles and stuff like that."

Over the past 20 years the price of petrol has tripled.

Breaking down the average UK price of £1.33 per litre, 53p goes to oil companies, 22p goes in VAT and 58p goes in duty.

Sixty percent therefore goes to into the Treasury.

"It's unavoidable," one motorist told UTV. "You have to pay it, it's either that or get rid of the car."

Another said: "I'm very upset, but I hear it's going up about 3p in January so they're just going to put us out of the market completely."

Mr Paisley said the "extortionate" rate must be lowered to put NI in line with other regions.

"The government also needs to take a long hard look at themselves when passing on charges to consumers," he continued.

"Something needs to be done here to reduce this extortionate rate.

"If the government was to substantially reduce the tax burden on fuel, this would act as a potential stimulus to the economy.

"People would be given more money to spend and businesses would be enabled to lower their prices passing on further savings to consumers."