Motorists will sell their cars and turn to alternative means of transport including renting a car when needed.

That is according to new research following the Budget announcement that fuel duty will still rise in August.

A survey completed by car rental company Sixt found that a third of people have either sold or stopped using their car in the last year, turning instead to public transport, walking or cycling.

Fuel prices were cited by 21% of these people as the number one reason for leaving the car behind. According to the survey, a further one in 10 claims that the fuel duty increases in the Budget will finally force them to swap their cars for a cheaper method of transport.

The Chancellor's confirmation of the fuel duty rise means that whatever heights fuel will have reached by August, prices will go up by another 3.62p per litre. Even at today's prices that would push the average litre of diesel above the £1.50 mark.

What are described as `soaring insurance costs' are the second most popular reason for turning away from car ownership.

Sixt's calculations reckon the collected average savings former car owners make by giving up their transport are almost £1,800 per year, and will increase to around £2,000 in August.

Nationally, 86% of former car owners say they do not regret selling their cars, with respondents in Belfast, Liverpool and Bristol particularly happy about the decision.

The decline in car usage by inhabitants of urban areas is contributing to the changing face of car ownership. Almost one in five report that they are simply not getting enough usage out of their car in the city to justify keeping it.

Paul McLoughlin, Managing Director, of Sixt UK said: "The cost of owning a car for people living in the cities - from maintenance, taxation, fuelling, insurance, as well as simply owning a car - is proving to be a cost too far.

"However, people still need to use a car from time to time and the growth of short-term, last minute rental demonstrates how city motorists' relationship with the car is moving into a new, cheaper and less committed phase."