Fuel prices in Northern Ireland — already among the highest in Europe — have increased more in the last month than anywhere in the UK, it emerged today.

Despite the Government’s decision on Wednesday to postpone the fuel duty rise until next year, industry experts predict that motorists across the province may even be worse off come October.

Indeed, Ulster drivers, who are now forking out between £300 and £400 — or up to 37% – extra a year for petrol and diesel, have been warned to brace themselves for a bumpy ride.

Speaking to the Belfast Telegraph today, Luke Bosdett, a spokesman for the AA Public Affairs unit, said that although there has been a “dramatic slowing in the pace of increase” in fuel prices across the board, prices are still rising by a higher margin here than in any other UK region.

“Northern Ireland saw the biggest increase in the price of petrol and diesel over the past month,” he said.

“Fuel price rises seem to have have levelled off at last. Unlike the 5p to 7p-per-litre increase for petrol and diesel last month, average prices mid-June to mid-July rose by a more modest 1.5p in the UK and saw an increase of 2p in Northern Ireland,” he said.

“We’re not quite sure why the prices have risen faster in Northern Ireland than elsewhere. It’s almost a ripple effect.

“The Chancellor’s decision to defer October’s 2p duty increase will help alleviate the pain of high fuel prices for some UK motorists, but drivers in Northern Ireland won’t be 2p better off come October.”

New figures from the AA July Price Report show that Northern Ireland petrol prices went up 2p per litre (from 118.1p to 120.1p), while diesel jumped by 2.1p (from 131.5p to 133.6p) in just four weeks.

That compares with a UK average of 119.51p for petrol and 133.08p for diesel and makes for an added strain on Ulster household budgets, which are already burdened by ever-growing food, oil, gas, electricity and mortgage bills.

The statistics also show that retail giants have not been spared the scourge of increasing fuel prices, with Northern Ireland’s ‘big three’ all posting adequate hikes.

Asda petrol buyers are now paying 117.4p, compared to 114.85p last month (up 2.29p), for example, while diesel went up from 127.68p to 130.47p (a 2.79p increase).

At Tesco, petrol prices have soared from 117.55p last month to 118.94p (up 1.39p), with the cost of diesel up from 130.26p to 132.23p ( a 1.97p hike).

At Sainsbury’s there has been a surge in the price of petrol from 116.20p to 118.55p (up 2.35p), while diesel has leapt from 128.95p to 131.73p (up 2.78p) in just four weeks.

Ironically, the bad news comes at the same time as the Government announced that the 2p duty rise that was planned for October will be postponed for six months.

It is the second time the Chancellor has delayed a 2p duty rise. Another increase was planned to take effect from April 1, but in the 2008 budget Alistair Darling announced it would be delayed until October.

The move means duty on all types of road fuel will stay fixed at 50.35p per litre until the 2009 budget. However, this still means the UK has the highest rate of tax in the G8 Nations.

Brendan McLoughlin, founder of PetrolPrices.com, the price comparison website which puts the most expensive petrol here at 125.9p (in Newry) and most expensive diesel at 135.9p (Belfast), said the move falls far short of effective action.

“If the Chancellor is expecting gratitude from motorists in Northern Ireland he'd better brace himself,” he said.