Fuel costs reach 30-month high

People with car insurance are among those struggling to cope with the rising cost of fuel as prices hit a 30-month high in May.

CommSec chief economist Craig James told the Herald Sun that those who drive diesel vehicles have faced larger price hikes than petrol users.

He noted that over the last three months, those with diesel-powered motors have seen the cost of fuel increase by 18 c per litre, whereas unleaded petrol has only gone up by 10 c.

Mr James warned that the cost of filling up a tank is not likely to stay at its current level and that those with car insurance could face further increases in the coming months.

"The local petrol price will keep ticking higher in the short term, keeping consumers cautious about their spending habits and enticing them to scour for bargains," he stated.

With the cost of running a vehicle rising, drivers may be tempted to go online to compare car insurance to ensure they are not paying an unnecessarily high amount for cover.

Since February 13th 2011, the cost of unleaded petrol has risen from $1.35 to $1.45 per litre.

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