THE credit crunch, falling house prices, the 10p tax debacle, the Northern Rock collapse... these are dark days for the Government, but yesterday's fuel protests suggest things may get worse before they get better.

Last week crude oil hit a record high of $134 a barrel. Some pundits believe it could climb as high as $200 by the end of the year.

This is having a devastating impact on pump prices with diesel, in particular, rising at a phenomenal rate. The cost of a gallon has soared by 15 per cent since January and prices show no signs of slowing.

Despite this crippling increase the Government is continuing to rake in more than 50p on every litre of diesel sold, plus 17.5 per cent VAT.

Worse still, the Chancellor has another double whammy for motorists on the way.

A further 2p per litre tax increase is due this October and changes to the road tax system will see nearly 18 million drivers hit with above-inflation increases. Some will have to find an extra £245 per year just to keep their cars on the road.

Unsurprisingly, Labour MPs who fear a General Election wipe-out are urging the Chancellor to think again. More than 30 backbenchers have signed a motion urging him to scrap road tax increases and take action on the rising cost of fuel.

Motorists have been a soft touch for more than a decade. They have endured a raft of extra taxes and fuel duty increases introduced under the guise of helping to combat pollution and global warming, despite cars and lorries only accounting for 20 per cent of Britain's carbon dioxide emissions.

Ministers say they are powerless to help.

But booming revenues from North Sea oil tax could easily fund a significant cut in fuel duty.

We confidently expect the Chancellor to scrap the autumn 2p tax rise but, for many motorists, that will be too little, too late.

If the Government doesn't go further, spiralling fuel and road tax costs will be yet another nail in Gordon Brown's coffin.