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AA credit card holders can save money when buying fuel, which could help mitigate the VAT increase, it has been suggested.

According to credit card provider AA, cardholders are able to earn two points for every £1 spent on fuel and other motoring purchases.

In addition, holders of the AA credit card can also earn one point for every £1 spent on other shopping for AA members, and one point for eery £2 spent for non-members.

AA's reminder of the potential benefits of an AA credit card come as chancellor Alistair Darling revealed in the pre-Budget report that VAT will return to 17.5% from 15% in the New Year.

This is expected to add around 2.36p per litre on to the price of petrol, and 2.4p per litre on the cost of diesel, according to AA Finances.

A further tax increase is also expected next April, which will increase the price of petrol by another penny, the credit card provider notes.

The typical variable rate on the AA credit card is 16.9% APR.

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Credit Cards	0% Balance Transfers	0% Purchases	APR Representative (Variable)
	Tesco ClubCard Credit Card
	9 months	15 months	16.9%
** 16.9% APR representative (variable). Based on a credit limit of 1200 and purchase rate 16.9% p.a(variable). **
	Virgin Credit Card
	20 months	3 months	16.8%
** 16.8% APR representative (variable). Based on a credit limit of 1200 and purchase rate 16.8% p.a(variable). **
	Barclaycard Platinum with BT
	22 months	3 months	17.5%
** 17.5% APR representative (variable). Based on a credit limit of 1200 and purchase rate 17.5% p.a(variable). **
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