Road fuel tax rates should be allowed to float in line with oil prices to smooth out the impact of pump price fluctuations, according to the RAC Foundation lobby group.

The call to reduce the impact of soaring fuel costs comes as petrol prices in some parts of the UK touch £1 per litre for the first time. The RAC Foundation is one of many road user lobby groups to call for government action following the latest rise in fuel prices after several US gulf coast oil refineries were damaged last week by Hurricane Katrina.