Drivers of petrol and diesel cars are being warned they could be penalised depending on the type of vehicle they buy.
All motorists are facing a hit to the pocket with Vehicle Excise Duty (VED) rates set to rise come April 1, 2022.
But after the VED changes were announced, it has emerged that petrol and diesel drivers will be harder hit, Manchester Evening News reports.
A spokesman for Close Brothers Motor Finance, Sean Kemple, said Brits filling up with the gas types will be affected solely on the "type of vehicle" they buy.
Gas guzzlers and models producing high levels of air pollution are set to be most affected.
Vehicles producing over 255 g/km of CO2 pollution will see a massive rise of £120, as the 2021 current rate of £2,245 shoots up to £2,365.
Meanwhile, drivers of cars producing 226 to 255 g/km will see a £105 rise, with fees for cars producing 191 to 225 g/km increasing by £75.
Price rises will be seen across all vehicles except for those producing less than 75 g/km of CO2.
Mr Kemple has also warned of the “challenge” ahead as drivers look to switch to electric cars.
He said the Government would need to “offset” tax revenues as more drivers started to ditch their existing petrol and diesel cars.
Speaking to Express, he said: “You can see the incentive from a tax perspective of road tax and benefit in kind moving towards lower emission vehicles.
“That's better for everyone involved so it's a win-win situation.
“The challenge then is, how does the Government then offset those tax receipts in terms of what they would have been getting from petrol and diesel vehicles.
“What you then see is the consumers of petrol and diesel, in their view, I suppose being penalised by the type of vehicle they are purchasing.”
The Treasury has previously estimated they will need to fill a £40billion black hole as a result of the loss of VED and fuel duty rates.
The VED increase is set to come into effect on April 1, 2022.
The changes were first announced during last year’s Autumn Budget.
HM Revenue and Customs said the rise is to ensure VED rates are uprated with the Retail Prices Index (RPI).
They said increasing VED rates in 2022 will ensure rates are “maintained in real terms”.
They said the changes will ensure motorists “make a fair contribution to the public finances”.
They added: “This measure will impact on motorists owning a car, van or motorcycle or using a motorcycle trade licence.
“The increase in VED rates is in line with RPI meaning rates will remain unchanged in real terms for vehicle owners.”
