Three-quarters of fleets expect their costs to increase this year, according to a Fleet News poll.

It marks a significant deterioration in confidence since last year’s Fleet News Intelligence (FNi) survey, which found that 47% of fleets expected their costs to rise over the coming 12 months.

Car prices, fuel costs and insurance premiums are the principal causes of concern.

Suppliers are already reporting a flurry of activity on contract negotiations, as fleets look to clamp down on overheads to offset expected rises elsewhere.

The Petrol Retailers Association (PRA) warns of a minimum 5p-per-litre rise in the price of fuel by the end of March, with the possibility of a 10p hike by the end of the year.

The group, which represents two-thirds of the UK’s 9,000 petrol forecourts, blames VAT’s return to 17.5%, the planned inflationary increase and a 1ppl rise in April.

The Government is also withdrawing its biofuel duty incentive in April, which the PRA claims will result in a 1ppl rise at the pumps.

Brian Madderson, PRA chairman, said: “The predicted 10ppl rise does not take into consideration any increase in the world oil price, which is also a possibility and could add another three to 5p per litre to forecourt inflation.”

Exchange rates and the price of commodities used in vehicle production forced manufacturers to increase new vehicle prices in 2009.

“These price changes were driven by external economic factors over which no company has any control,” said a Ford spokesman.

Privately, the bosses at several manufacturers have told Fleet News that they expect to raise prices in the UK at least once this year.

BVRLA chief executive John Lewis said manufacturers would be relying on fleets to pull them out of a post-scrappage slump in sales.

“However, the weak pound and the need for carmakers to maintain healthy profit margins will mean that our members are unlikely to see the sort of deals they did pre-recession,” he warned.

“The capital cost of the car is a key component of daily rental pricing and the increases we are seeing will inevitably find their way to the rental customer.”

Insurers are also passing on costs incurred through their own inflationary pressures.

Simon Baker, head of commercial motor at AXA Insurance, said average renewals rose 7% in 2009.

He warned fleets that rates would “accelerate” this year by between 7 and 11%.

According to insurance industry consultant EMB, insurers paid out £1.20 for every £1 they took in as motor premiums.

“They cannot continue writing business where they are making a loss.

"Either they need to put up prices or look at other measures, but price rises look inevitable,” said EMB spokesman Graham Whitehead.

Not all fleets expect their costs to rise this year, however.

Trevor Pinhome, transport administrator at Ordnance Survey, said: “Our fleet costs will decline as we have lost around 30 drivers due to voluntary early severence and retirement.

"Also, lease costs on Ford, our main badge provider, have decreased slightly over the past few months.”