Car insurance: war of words over fuel

Monday, 21 February 2011

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A disagreement has developed over who is accountable for the high expenses that car insurance customers are facing at stations.

Opec, the organisation of oil producers, has claimed that the justification for fuel prices being so expensive in the UK is due the amount of tax motor insurance holders are having to pay on their petrol and diesel.

However, according the Press Association, the chancellor George Osborne has retaliated by saying that British motorists are "paying the price" for rising fuel costs, with officials at Downing Street suggesting that "non-tax factors" were the reasons behind high fuel prices.

This news comes after a recent report from the AA has found that the price of a litre of diesel has jumped to more than £1.33, while petrol now costs almost £1.29 a litre.

Edmund King, the AA's president, said: "We understand that prices remain volatile, but hope that retailers will pass on savings when they can." ADNFCR-3010-ID-19952209-ADNFCR

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