DNA Insurance

DNA Insurance

March 25, 2010 02:00 ET

Petrol Price Increase May Scupper Recovery Warn Motor Insurers

ESSEX, UNITED KINGDOM--(Marketwire - March 25, 2010) - According to the AA, Britain's largest motoring organisation, average petrol prices at pumps across the UK are at risk of rising above the record high set in July 2008. Concern has been mounting within the motoring industry since late January, whereupon a 17% rise in European wholesale petrol prices has been observed. In light of the 3p rise in petrol fuel duty and VAT that is due to come into effect on the 1st April, it is feared that the average UK price of unleaded petrol, which currently stands at a little over 116p per litre, will easily exceed the 119.7p record set almost two years ago.

Subsequently Motor Trade Insurance companies have called for the Chancellor, Alistair Darling, to postpone the planned rise in petrol fuel duty and VAT in hope of reducing the burden on the motoring industry, which is otherwise enjoying a recovery helped in part by the car scrappage scheme. President of the AA, Edmund King, commented: "The UK is barely out of recession yet petrol prices threaten to rise to record prices seen during the boom of 2008 – shortly before the collapse into recession".

Trader insurance companies and insurance brokers have reacted with concern over the rising cost of unleaded petrol, which has already hit 120p in central London and is expected to reach an average of 124p nationwide. A spokesperson for DNA Insurance commented: "As the motor industry shows signs of recovery, the sharp increase in petrol prices may seriously damage the good work that has been achieved during recent months. We urge the Government to seriously reconsider the planned increase in fuel duty and VAT, which will only exacerbate prices".

DNA Insurance is a leading UK insurance broker based in Romford, Essex. By searching some of the biggest insurers in the UK they can offer bespoke motor trade and taxi insurance policies for both personal and business needs.

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