DRIVERS in Gloucestershire have been left fuming after a hike in fuel duty sent prices soaring at the pumps.

The 2.3p-a-litre fuel tax increase came in yesterday, bringing the average price of unleaded petrol to 107p per litre.

Terri Harris, sales administrator of Cheltenham-based Starline Taxis said: "The increase in duty will have a huge effect on taxi drivers everywhere.

"Now petrol prices have gone up, jobs will cost our drivers more money, so they wont make as much overall.

"We haven't put our fares up, so why should petrol duty go up?

"It's already quiet due to the recession, so this will have a big effect."

Despite pressure on central government from motoring groups, the rise, branded "unacceptable" by RAC motoring strategist Adrian Tink, hit motorists at the pumps yesterday.

At the beginning of the year, petrol was selling for 85p a litre, but with world oil prices likely to increase over the next few weeks, it is feared prices at the pump could go up to 110p a litre soon.

Ken Hackling, managing director of Cotswold-based Hackling Transport Ltd said the increase was another blow for his company.

He said: "When we are in such difficult times and trying to support local businesses with good rates, this will have a significant impact.

"You can't do anything in this situation except pass the increase on to your customers. We've got no alternative.

"Fuel makes up one third of our costs, and you can't argue with the prices, it's a volatile market."

In a bid to keep customers happy, supermarket Morrisons has agreed to freeze prices until Sunday.

A spokeswoman said: "Our petrol prices are among the lowest in the country and our customers know that, whenever they fill up with us, they enjoy the best possible value.

"We constantly review our pricing versus local competitors to ensure our customers get a competitive price for their petrol.

The supermarket, which has a store in Up Hatherley, Cheltenham, is selling unleaded petrol for 103.77p and diesel for 103.9p.