Experts believe VED costs will rise again this year, following the year-on-year trend.
Generally, they increase with inflation, which as of January 2021 was 0.7 percent.
According to Carwow, a new and used car buying platform, petrol and diesel vehicles may set people back up to £155 per year in 2021.
Alternative-fuel vehicles which use bioethanol or LPG liquid petroleum gas could cost slightly less at £145.