PETROL station managers, cabbies and motoring groups have united in criticising the timing of a tax hike on fuel.

A 2.3p-a-litre increase in fuel tax came into effect on Tuesday, despite pressure on the Government to delay the rise in the current economic climate.

Don Rhodes, of Colchester Hackney Carriages Association, said rising prices at the fuel pump are “the last thing we need now”.

He said: “Taxis are a luxury people quickly cut out if money is tight. The recession has cut the number of fares. My business is down by 30 per cent.

“With more expensive fuel we will be making less money from each fare and we can’t just put up our fares to reflect rising costs.

“I would have liked the Government to wait until the economy was showing signs of recovery before putting up taxes.”

Mr Rhodes said the situation was better now than a year ago, when rising oil prices had seen petrol costing more than £1.20 a litre.

Priuish Anthony, manager of St Osyth’s Pump Hill garage, had to put prices up yesterday morning, with unleaded petrol costing £1.07 a litre and diesel £1.08.

He said: “It’s not great timing for anyone and our customers have been annoyed about it.

“But they know it’s not us putting the prices up it’s the Government and that is who they are angry at.”

The increase is the third rise in fuel duty in the past nine months, with 67p of every £1 spent on petrol going to the Treasury.

Edmund King, AA president, said: “A fuel price hike is the last thing the economy needs at the moment.

“Fuel is now taxed as a luxury at a higher rate than even Champagne. The Government risks killing off any green shoots of recovery by hiking fuel prices.”