The Federal Chancellor warns that the petroleum tax could rise “sharp” next year in order to balance the balance sheet

The German Chancellor warned yesterday that mineral oil tax might have to rise sharply next year in order to balance the balance sheet.

Jeremy Hunt said the state of Britain’s finances meant a fuel tax freeze since 2011 could not be extended indefinitely.

Mr Hunt canceled a planned 7p increase in the budget for this month and extended a “temporary” 5p cut for a further 12 months.

Harriet Baldwin, Tory leader of the Commons Treasury Committee, said she was “very skeptical” that an increase would be pushed ahead of a general election.

But Mr Hunt said it was not possible to freeze the service again.

Jeremy Hunt (pictured today) said the state of Britain’s finances meant a fuel tax freeze since 2011 could not be extended indefinitely

Harriet Baldwin, Tory leader of the Commons Treasury Committee (pictured today), said she was “very skeptical” that an increase would be imposed ahead of a general election

He said: “We cannot afford to make this change permanent. It just wasn’t an option.’

Fair Fuel UK’s Howard Cox warned that raising fuel taxes ahead of an election would go badly in the elections.

Mr Cox said: “It’s amazing that the Chancellor still doesn’t get it. Raising the tax on an essential resource that is also the commercial heartbeat of the economy will be political suicide in a general election year.’