Drivers have been urged to brace for a sharp rise in petrol and diesel prices at some of the cheapest stations in the UK ahead of the October Budget.

With Prime Minister Sir Keir Starmer warning that the Labour Government's first budget will be "painful", many drivers are predicting that fuel duty will rise.

Akansha Nath, General Manager at Intuit Credit Karma, highlighted that any increase in fuel duty could have huge consequences for motorists across the country.

She explained: "Motorists have faced rising costs of running a petrol or diesel vehicle in recent years. This includes spiraling fuel costs during the cost-of-living crisis, further exacerbated by new road policies like the expansion of ULEZ.

"As such, an increase in fuel duty will likely pile further pressure onto already stretched budgets. Our research finds roughly one in six people currently pay for their car through finance, plus we know customers are also using credit to cover insurance and fuel bills too."

The tax paid on energy sources, the current fuel duty rate of 52.9p per litre was introduced in early 2022, when the previous Conservative Government reduced the charge by 5p to compensate for rising oil prices during Russia's invasion of Ukraine.

However, with more motorists switching to electric vehicles and prices at the pumps stabilising, the amount raised by fuel duty is falling, with some predicting this could lead the Government to raise the rate in the budget by up to 7p per litre.

Whilst a rise in fuel duty would cause prices to rise across the country, lower prices at supermarket garages would see the sharpest increase.

According to the RAC, drivers currently pay an average of 131.9p per litre for petrol at supermarket fuel stations. However, if a 7p fuel duty rise directly affects prices at the pumps, drivers could typically face charges of 138.9p for each litre.

As a result, drivers would have to pay an additional £3.85 to fill the tank of an average family car.

Whilst this seems like a relatively minor amount, high mileage drivers who typically visit the petrol station twice a week would end up spending £401 more on fuel each year than they do with the current rate.

The predictions come as the TaxPayer's Alliance recently highlighted that UK drivers are already paying 6p a litre more than the EU average for petrol, being the tenth most expensive country for the popular fuel compared to the European countries.

Shockingly, the organisation also found that diesel is around 16p per litre more expensive in the UK than mainland Europe, with Brits paying more than any EU nation.

Currently, fuel duty and VAT account for around 55 percent of the cost of petrol and diesel, with the TaxPayer's Alliance urging Chancellor Rachel Reeves to avoid increasing the rate further.