Drivers were spared any new petrol pump price pain today in the Budget but motoring groups warned of further rises to come.

Although Chancellor George Osborne ruled out any fuel duty increases, motorists will still face earlier-announced rises of 1p a litre in October and 0.76p a litre in January 2011.

And with VAT due to rise to 20% in January, new-year pump prices will go up even further.

Motorists will also be hit by a rise in insurance premium tax.

AA president Edmund King said: "There is some relief that there is not going to be more punishment at the pumps but motorists will face a double whammy in the new year.

"We estimate that taking all the increases into account, motorists will, by January, be paying 4.63p a litre more for petrol and 4.68p a litre more for diesel than they are now.

"The insurance premium tax increase is also a blow. We already have a problem with uninsured vehicles."

The Government has already talked about a fuel stabiliser plan and today Mr Osborne said there would be an examination of the impact of oil price rises on pump prices.

Also on the transport front, Mr Osborne committed the new Government to a number of projects.

These included the upgrade of the Tyne and Wear Metro, the extension of the Manchester Metrolink, the redevelopment of Birmingham New Street train station and improvements to the rail lines to Sheffield and between Liverpool and Leeds.

Professor Stephen Glaister, director of the RAC Foundation said: "The Chancellor has pledged to keep investing in transport infrastructure and judge capital spending plans on the economic returns they deliver.

"This must be good news for the congested road network, and the 34 million drivers who use it, because highways schemes usually offer better rates of return than those for rail."

He went on: "Drivers know they must pay their fair share of taxes, but the emphasis is on fair and talk of a fuel stabiliser is to be welcomed.

"While there will be some relief that fuel duty has not been hiked even further, the existing planned rises, plus the increase in VAT, means the cost of an average tank of fuel will rise by about £3 early next year."

Mr Osborne also confirmed a pre-election promise to explore ways of replacing the Air Passenger Duty (APD) airport departure tax with a per-plane tax.

However, air passengers will still face a previously-announced APD rise in November 2010 which will sharply increase the cost of flying to some areas, with those flying to the Caribbean being particularly hit.

Andy Harrison, chief executive of budget airline easyJet said: "Four out of five British travellers would be better off under a per plane tax as private jets, cargo aircraft and travellers changing planes in Heathrow will start paying their fair share.

"We applaud the Government's intention to end this daft poll tax on passengers."

Ed Anderson, Chairman of the Airport Operators Association said: "We remain concerned that the Government still intends introducing a per-plane duty but are pleased that they are willing to consult the industry first.

"We will work with the Government to ensure that the impact of a per-plane duty on the viability of routes and regional connectivity will be minimised."

On the November APD rise, Brian Wilson, chairman of the pro-aviation group FlyingMatters, said: "These hikes in flight tax will kill off any prospect of recovery in the aviation sector and strangle the flow of international visitors and foreign investment in the UK.

"To do so at any time would be unwise; to do it now is an act of economic madness."

Mr Osborne also announced today that the Government would look at selling off its 49% share in air traffic control company Nats.