Petrol prices: Expert warns fuel costs could grow beyond £105 in just 2 weeks

Petrol prices: RAC spokesperson reacts to criticism from The AA

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Last week the cost of filling up an average family car broke the £100 barrier for the first time. Prices at some stations across the UK have swelled even further, with many Britons now left deciding if and when they can afford to make a trip to the pump. Soaring fuel costs are adding to the financial misery many are experiencing thanks to record levels of inflation and energy bills.

A litre of petrol now costs 185p on average, while diesel fetches 191p per litre, according to data from the RAC Fuel Watch.

Concerns have been raised by the Government that the issue is being made worse because forecourts are not passing a 5p fuel duty cut on quickly enough to motorists.

Business Secretary Kwasi Kwarteng has asked the Competition and Markets Authority (CMA) to investigate whether the duty cut has been passed on and if price variations exist between local forecourts.

Since the start of 2022, fuel prices have been steadily rising due to a combination of factors.

Most countries have now removed their Covid restrictions and lockdowns, allowing businesses to resume normal operations.

Fewer people working from home has also increased demand for fuel and helped to push prices up.

Howard Cox, the founder of the Fair Fuel UK Campaign, told that the average price for a litre of petrol and diesel could grow by around 10p each in the next two weeks.

He said a litre of petrol is likely to cost 193p and diesel 203p unless further action is taken by the Government.

As a result, a typical 55-litre petrol car would cost £106.15 to fill up, while a diesel equivalent would set you back £111.65.

Mr Cox’s group is calling for Prime Minister Boris Johnson to cut both fuel duty and VAT by 20p, to help alleviate the pressure on motorists.

Chancellor Rishi Sunak announced a 5p fuel duty cut, last March, as part of his Spring Statement.

Speaking at the time he said his measures would help to create “a stronger, more secure economy for the United Kingdom”.

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However, several months on and the cost-cutting measure has had no impact on rising fuel prices.

Russia’s invasion of Ukraine has further exacerbated issues for countries around the world, including Britain.

As one of the largest oil suppliers in the world, Moscow is being targeted by economic and trading sanctions.

The penalties have helped to create potential supply concerns, pushing up oil prices.

Crude oil prices and the dollar exchange rate play a significant role in determining prices at the pump, as crude oil is traded in dollars.

By the end of 2022, European Union (EU) leaders have committed to ending most Russian oil imports.

While the UK has also pledged to block all of the oil it receives from Russia by the end of the year – Moscow currently supplies eight percent of its needs.

Developments, including these, have pushed prices further as more and more countries seek alternative providers.

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