Motorists in Lincolnshire are facing a year of misery at the pumps – with fuel prices set to soar.

Forecourts across Lincolnshire are already seeing charges increase, with drivers in Sleaford particularly hard hit by prices of £1.15 for unleaded and £1.16 for diesel.

But motorists are being told to brace themselves for those prices to rocket, with record highs of up to £1.25 per litre.

Peter Denby, managing director of Doddington Road-based Denby Transport Limited, said such a rise in the cost of diesel would have a dramatic effect on business – and could harm the county's economic recovery.

"Diesel is just about our biggest cost. We have 50 trucks and our fuel bill is probably more than £1.25 million per year," he said.

"If the price of diesel goes up by 10 per cent, it will dramatically affect how we operate – and we will have to pass the increase on to our customers.

Cab driver Simon Hearn, from Lincoln's A15 Taxis, said he would look to absorb any increase but, if prices continued to spiral, customers could ultimately see the effects in higher fares.

"Prices are on their way up as they are and there's little we can do about it," he said.

"At the moment I wouldn't contemplate putting prices up, especially with the recession, as we don't want to push people away."

Currently, the cheapest fuel in the county is to be found in Lincoln, with a number of filling stations offering unleaded petrol at £1.08 and diesel at £1.10.