FUEL prices have increased by an average 1p a litre/4.54p a gallon in the past month, according to the latest PHH Vehicle Management monthly fuel price report. But as pump prices continue to rise as a result of the increases announced in the Budget, there continues to be political fall-out over the annual fuel duty escalator.

And with the Conservative Party continuing to press for an end to the escalator, there were claims this week that the price of a gallon could reach £7 by 2010 if it continued at present rates.

Paul Vanags, PHH Vehicle Management's business development manager for fuel, said: 'The latest increase is another blow to British companies that have to run vehicles as part of their business.'