MOTORISTS could face a 50% rise in fuel duty in future years to cover a £13 billion hole in Treasury coffers.

The gap in public finances will come from increased use of fuel-efficient cars and a switch to electric vehicles, an RAC Foundation-commissioned report said.

It added that, while the fuel duty collected by the Exchequer stands at 1.7% of gross domestic product (GDP), this rate will tumble to 1.1% of GDP by 2029.

The report said vehicle excise duty (VED) would also drop over this period, from 0.4% of GDP to 0.1%, with the combined fall causing the £13bn hole.

RAC Foundation director Professor Stephen Glaister said: "If the Chancellor was faced with a £13bn shortfall in motoring tax revenue today, he would need to push the rate of fuel duty up from 58p per litre to 87p per litre to fill the financial black hole.

"Clearly there is no guarantee future rises in duty rates will be limited to inflation, as is current policy."

He added: "As drivers endure record prices at the pumps, they might be surprised to learn future governments face a drought in motoring tax income.

"The irony is that, while ministers encourage us to buy greener, leaner cars, they are being forced to look at ways of clawing back the money motorists think they will be saving.

"This isn't scaremongering. The Treasury has already announced a review of VED bands to ensure drivers make a fair contribution to the public finances even as cars become more fuel-efficient."