Chancellor Jeremy Hunt has been warned not to hike fuel duty in his autumn budget on Thursday, with experts saying it will push inflation even higher.

The warning comes from The RAC who found there is an “extremely strong link” between the two.

Fuel duty was cut by 5p per litre by the Treasury in March.

Since then average pump prices have fallen from the record highs of 192p per litre for petrol and 199p per litre for diesel.

However, the RAC said the average cost of a litre of petrol rose by 4p in October while diesel was up 10p.

Bradford Telegraph and Argus:

RAC fuel spokesman Simon Williams said: “When the prices drivers pay to fill up rise, inflation seems certain to follow.

“That’s something the Chancellor must recognise as he considers what action to take today.

“Last month, the ONS stated the single main reason inflation wasn’t higher was because fuel prices had fallen through the summer.

“Unfortunately, going into the autumn, pump prices have been increasing again, which we fear will only put further upward pressure on the headline inflation rate.

“We therefore strongly urge the Prime Minister and Chancellor not to tamper with fuel duty, as doing so would force the millions of hard-working people who depend on their cars to spend even more on petrol and diesel, putting even more stress on already-squeezed household budgets.”

What is going to be in the autumn statement?

Chancellor Jeremy Hunt has been explicit that “difficult decisions” are coming on tax and spending, but as is the norm with budgets and fiscal statements, nothing has so far been officially confirmed.

Spending cuts across most if not all Government departments are expected, although all eyes will be on whether health and defence spending are protected from the brunt of savings.

Any cuts could prove painful to already stretched public services and Mr Hunt is likely to seek to claw back revenue through tax rises.

Bradford Telegraph and Argus:

It is widely expected that the Chancellor will seek to raise finances through stealth taxes by freezing the rates in which workers begin paying higher rates of tax. Put simply, inflation and pay increases will mean more people being dragged into higher bands.

Also believed to be under consideration is a plan to hike the amount that local authorities can increase council tax by without holding referendums.

The threshold for when the 45% rate of income tax kicks in for the highest earners could also potentially be decreased from £150,000 to £125,000.

Mr Hunt is expected to make the support plan for energy bills less generous from April, instead switching to more targeted measures in order to save the Treasury billions, while he is also considering increasing the windfall tax on oil and gas giants from 25% to 35% while also expanding the levy to electricity generators.

The cap on social care costs announced by Boris Johnson could also be delayed by at least two years, although campaigners have already flagged concerns about any such decision.

Mr Hunt is also expected to follow his predecessor Mr Kwarteng and lift the cap on bankers’ bonuses.