UK Prime Minister Tony Blair has warned that a cut in taxes on fuel would have a knock-on effect in both the health and education sectors.

According to the British Prime Minister, the cut would cost almost £1 billion, halting the repair programme which has helped 11,000 schools and effecting the number of doctors and nurses within the health sector.

The Government`s official website said that the price rise in crude oil from $10 to $30 per barrel since last year was to blame. According to the site, of the 19p petrol increase over the last 16 months, duty accounted for less than 2p.

Motoring organisations however have claimed that the PM`s comments are misleading and disingenuous, with the Petrol Retailers Association commenting that Tony Blair`s comments "insult the intelligence of the motorist in the UK".

The Prime Minister`s comments came ahead of `Dump the Pump` - the nationwide petrol boycott - planned for August 1st, where UK motorists are being asked to refuse to buy petrol or diesel on that day and every Monday thereafter until taxes and prices come down.