Driving costs rise 14 per cent in 12 months

The cost of driving has increased by 14 per cent over the last 12 months, according to a new report. It now costs motorists an average of £130 a week to keep a new car on the road.

New cars cost an average of £6,689 annually to run, and used cars £4,724.

The increase is nearly three times the annual rate of inflation, which is running at 5 per cent.

Fuel prices (up 12.4 per cent), insurance (14.3), car finance (9.8) and maintenance costs (8.8) are major factors in the rise. However, depreciation, which rose 16.6 per cent, represented the largest increase.

Even excluding finance and depreciation, day-to-day running costs for new cars were found to have increased by 11.1 per cent; for used cars, running costs increased by 13.2 per cent.

Since 2009, the average cost of car insurance has grown by 35 per cent, according to the report.

The report, published by the RAC, comes ahead of the planned 3 per cent rise in fuel duty, due to take effect on January 1. A second increase is planned for August 2012.

George Osborne, the Chancellor of the Exchequer, has come under pressure to postpone the duty rises, when he makes his autumn statement next Tuesday (November 29). More than 80 Conservative MPs were among those who supported a motion last week urging Osborne to reconsider the increases.

Fuel is already the biggest single running cost to motorists, with over 60 per cent of the price of petrol going in duty and VAT.