Fuel prices to hit £2 per litre this summer
Prices for petrol and diesel have significantly increased in just a week
Average fuel prices will hit £2 per litre this summer, meaning an average tank of fuel would cost £110.
The RAC have forecast the price hike due to high oil prices, increasing demand for fuel and a weak pound.
Government figures this week showed the largest weekly increase for both fuels since March, the average price of a litre of petrol on Monday was a record 175.6p, up 6.6p from 169.0p seven days earlier.
Average diesel prices increased by 3.7p per litre over the same period, reaching 185.3p.
RAC fuel spokesman Simon Williams said: "With analysts predicting that oil will average 135 US dollars a barrel for the rest of this year, drivers need to brace themselves for average fuel prices rocketing to £2 a litre, which would mean a fill-up would rise to an unbelievable £110.”
"The oil price is rising due to increased demand for fuel across the world as China eases its Covid restrictions and America and Europe go into the peak summer driving season.”
"All this combined with a weaker pound at 1.2 US dollars means wholesale fuel costs more for retailers to buy.”
"The wholesale price of diesel is fast approaching 160p a litre which, when you add 7p retailer margin and 20% VAT, would take the pump price over the £2 mark.”
"We strongly urge the Government to take drastic action to help soften the impact for drivers from these never-before-seen pump prices."
Labour say 'motorists are being taken for a ride'
Labour's shadow transport secretary Louise Haigh accused the Government of being "too busy tearing themselves apart to tackle the brutal price hikes facing working people".
She continued: "Motorists are being taken for a ride, and this hapless Government are too distracted to do anything about it.”
"The Conservative Government needs to tackle the brutal petrol hikes, and support Labour's call to put money back in the pockets of working people with an emergency budget."
The Treasury cut fuel duty by 5p per litre in March.
Separate pump price figures from data firm ‘Experian Catalist’ suggest that the average cost of a litre of petrol on Monday was 178.5p, with diesel at 185.2p.
More articles on the cost of living crisis:
Interest rates and inflation go up
Inflation rose by 8.8% in the 12 months to January 2023, down from 9.2% in December 2022. With interest rates also rising to 4%, those saving money will earn more interest on their finances, whilst those paying mortgages would pay more interest to the bank.
Energy bills
The price of energy went up incredibly as the cost of living crisis hit, with the gas price spike caused largely by the war in Ukraine. The price cap - which is set by an independent regulator to help offset costs onto customers - was set to rise to £3,549 for an average home in October but a price freeze from the government restricted the typical bill to £2,500. That's still an increase of 27% from the previous energy cap and as it's a cap on unit cost, the more energy you use the higher your bill will be.
Food prices
The cost of a weekly shop also has gone up as a result of the cost of living crisis. As a result of the war in Ukraine, a number of products including cooking oils and wheat have been disrupted. This means that several products are now considerably more expensive, driving bills up for customers.
Prices at the pumps
The average cost of petrol has also rose to unprecedented levels. Supply lines for petrol have been thrown into doubt as a result of the war in Ukraine, as Russia is a large export partner for gas, oil and fuel. In April 2022, the average price for a litre of petrol on the forecourt was 160.2p, whilst a litre of diesel would cost 170.5p. By late June 2022 the price had risen to an average of 190.9p for a litre of unleaded and 198.9p for a litre of diesel. In March 2023 the price wass on average of 147.03 in petrol and 167.04 in diesel.
Average cost of filling up a car with petrol hits £100
On 9th June 2022, the average cost of filling up a car with petrol hit £100 for the first time ever. Diesel had already hit that milestone. It comes as the cost of fuel hit a record high of one pound eighty a litre. The 2p rise was the biggest daily jump in 17 years. Prices have dropped by at least 20p per litre since the high point.