The yearly cost of running a car would rise by £100 and gas bills by up to £170 under Government plans to cut carbon emissions.
The Government wants to bring in a carbon-cutting scheme that would hike petrol and gas costs, according to The Times.
The idea is to encourage people to use less of these natural resources, which produce a lot of CO2 when burned.
Gas bills could soar an extra £80 to £170 a year. The average billpayer uses £550 a year of gas at the moment, so would pay up to 30% more.
For petrol car drivers, the yearly cost of filling up would rise from £30 to more than £100.
Even the cheapest overall car to run, the Kia Picanto, costs around £690.64 in petrol at today's prices to do the national average of 7,400 miles.
So even Picanto owners would pay 14% more in fuel costs a year.
However, Prime Minister Boris Johnson allegedly wants petrol to be dropped from the plans so as not to hammer drivers.
Farms may be exempt from any price hikes, as this could lead to food costs rising.
The Government wants the country to have 'net zero' carbon emissions by 2050. In other words, the UK would not produce more CO2 than it absorbs.
The move could hit the UK's poorest homes hardest, but the Government are reportedly planning ways to reduce that harm.
Johnson will meet Chancellor Rishi Sunak and Business Secretary Kwasi Kwarteng next week to talk through the ideas.
It could be launched as early as next year if Sunak has his way, or otherwise in 2023.
The scheme would work by expanding the current system which caps the amount of greenhouse gases that industry, power generation and airlines can produce.
These companies to buy and sell how much carbon they can use, basically setting a price on CO2.
The Government wants that scheme to cover greenhouse gases created by transport and heating buildings.
Companies that supply fuel and gas would have to buy and sell CO2 limits in the same way - and the cost would filter down to customers.
Fuel costs are already rising, which was the main reason inflation hit 2.1% in the year to May, up from 1.5% in the 12 months to April.
To save on fuel costs, try to:
Fill up at busy petrol stations - these stations buy more fuel and can take advantage of falling prices.
Choose a big station - like any other negotiation, the big buyers are better able to strike a deal.
Look for a cluster of stations - when several stations are close together, they are more likely to cut prices to tempt drivers in.
Shop around - the website PetrolPrices.com allows you to compare prices in your area.
Play the supermarket game - Supermarkets are competing on fuel prices along with everything else.
