Britons looking at hiring a car over Christmas are facing soaring fuel bills in the lead-up to Christmas as the cost of petrol nears £5 per gallon.

Millions of motorist will feel the pinch of festive visits to family and friends as prices are expected to hit 110p a litre by the middle of December.

The price increase works out to be more than a quarter on the same time last year, when petrol cost 87p for a litre.

The rise in price means that filling up an average family car with unleaded will cost £60.50, £12.15 more than in 2008.

The 30 million or so motorists in the UK must prepare for more worry in the new year when a planned 2.5 per cent increase in VAT on January 1 will add another £1.50 to the cost of a tank.

Auto goups predicted the high cost of fuel, blamed on fluctuating oil prices and the weak pound, will curb people’s Christmas spending.

Spokesman for the RAC, John Franklin said that the festive season is traditionally a very expensive time and this has been made worse by petrol prices rising by about 26 per cent from last year.

Franklin went on to say that with a £5-per-gallon mark likely to reach before Christmas, many families were likely to think twice about visiting family and friends.

Spokesman for AA, Andrew Howard said that if people are spending on petrol and then consumers will not be spending it on high street and not spending it on getting Britain out of the recession.

In the last month, petrol prices have risen from 105.1p per litre to 108.5p, with many forecourts already selling petrol at or above the 110p a litre mark.