Motorists are being squeezed at pumps more than ever as new government figures show the cost of petrol and diesel has risen to record levels per litre
Image: AFP via Getty Images)
Motorists face a “national fuel crisis” as petrol and diesel prices hit all-time highs, experts warn.
The average liter of petrol is now 175.5p, up from 168.8p last week – the previous record high.
Meanwhile, government figures show that a liter of diesel will set drivers back 185.3p, compared with 181.5p a week ago.
Gasoline has become 21% more expensive since the beginning of the year, diesel by 24%.
The rising cost of driving is becoming a national crisis, according to the RAC automobile organization.
RAC fuel spokesman Simon Williams said: “More radical government action is urgently needed, whether in the form of a further cut in fuel taxes or a reduction in VAT.
“As it is, riders will certainly not be able to cope unless something is done to help.
In pictures via Getty Images)
“This is quickly becoming a national crisis for the country’s 32 million drivers, as well as countless businesses.”
James Andrews, personal finance expert Money.co.uksaid: “Consumers are being hit from all sides but nowhere is this more evident than at the pumps. Gasoline prices have risen 36.5% in one year, four times the rate of inflation.
“It’s a pace that’s wiping out people’s disposable income. It obscures and exacerbates the broader cost of living crisis that caused the CPI to hit 9% in April – a pace that was already causing sleepless nights at the Bank of England.
Why are petrol and diesel prices so high?
Oil prices are rising simply because there is more demand for it, and this has been exacerbated by the war in Ukraine.
There have been shortages for the past year that have sent fuel soaring, and now companies are cutting ties with Russian oil. This means that the current crisis could well get worse – and more expensive.
The UK only gets around 6-8% of its crude oil from Russia, and a 2020 report by Autocar estimates that around 18% of UK diesel comes from the country.
This is not the same across much of Europe – about half of the barrels of oil that Russia produces every day goes to the continent, with the country being the world’s third largest oil supplier.
The UK hopes to completely phase out the use of Russian oil by the end of 2022. The EU is far more dependent on oil and has so far committed to reducing its consumption by around two-thirds.
As countries turn their backs on Russian oil, there is demand for it elsewhere, driving up prices.
Labor has spoken out on high fuel costs and has called for a “deadweight tax” on fuel giants to help ailing Brits.
Louise Haigh, Labour’s Shadow Secretary of State for Transport, said: “Working people are facing a cost of living crisis and the Conservatives have literally nothing to offer.
“Labour’s plan would help households through this crisis with energy bills cut by up to £600, funded by a one-off windfall tax on the oil and gas giants, taking workers at the pump with them.
“The Conservative government must come up with an emergency budget to deal with its cost-of-living crisis – and support Labor’s call to put money back in working people’s pockets.”
https://www.mirror.co.uk/money/drivers-facing-national-fuel-crisis-27165977 Drivers face a 'national fuel crisis' as petrol and diesel prices hit a new record