British motorists face even bigger holes in their pockets as petrol prices hit all-time highs. The cost of living crisis is getting worse and the latest oil news is not going to help
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Petrol prices have risen to yet another all-time high as Britons face a “national fuel crisis”.
The RAC said the average petrol price rose to 180.73p a liter on Tuesday (June 7) and the average cost of filling a 55-litre family car is expected to be in excess of £100.
Diesel already costs almost £102 per average tank.
This is a huge expense for Britons who could forego the price increase in a cost of living crisis.
Fuel prices are contributing to this crisis and are at record levels, but the RAC pointed out that we are still “some way from peaking”.
RAC Fuel spokesman Simon Williams said: “These are unprecedented times in terms of the rising cost of forecourt fuel.
“While the average price of diesel is heading towards £2 a liter, the cost of wholesale petrol unexpectedly fell by 5p a liter on Tuesday. If this price is maintained in the coming days, it could stem the flow of daily record gas prices.”
Why are gas prices so high?
Why are gas prices so high?
Gasoline prices are at such high levels for a number of reasons, including global demand and the war in Ukraine.
Prices were already rising before Putin’s invasion due to global demand. When the demand for oil increases, so does the price.
The war in Ukraine made this worse, as Russia is the world’s third largest oil supplier and was a particularly large supplier in mainland Europe.
Sanctions mean the western world is turning its back on Russian oil and looking elsewhere, but options are limited.
The UK is in a slightly different position to Europe, only getting about 6-8% of its crude oil and about 18% of its diesel from Russia, but it still has to compete for oil in world markets. Russian oil is to be phased out completely by 2022.
Taxes are also a big part of why fuel is expensive, and the total amount that goes into the Treasury’s pockets depends on the price of oil itself. At £1 per litre, 75% of the cost is tax and VAT also contributes.
Payment for fuel is also in dollars and the pound is currently weak against the dollar making payments more expensive
The 5p fuel tax cuts have now been offset by the price hikes and the Government has criticized suppliers for not passing fuel costs on to consumers. It is reported that there is a plan to name and shame suppliers who have essentially ignored the cut.
How can I refuel cheaper?
It’s probably even harder than usual to get cheaper fuel. It is therefore best to try to limit the number of refueling sessions.
Avoid using the car for shorter distances that you can realistically walk and try to save fuel by making your vehicle lighter. Don’t throw away a spare tire as you might need that in an emergency, but you may want to remove a roof box or something else that you don’t really need.
Some calculations suggest you should be using supermarkets’ petrol stations instead of direct from supplier petrol stations and you could potentially save £74.10 a year based on previous figures.
Many experts also argue that premium fuel just isn’t worth the extra cost, despite the theory that using it is more efficient in the long run.
Automobile entrepreneur Peter Vardy said: “Dealers often claim that premium fuel offers performance and economy benefits and can even protect your engine.
“In reality, unless you drive a high-performance vehicle, you’re unlikely to see many improvements – but you’re paying an average of 10p more per liter.
https://www.mirror.co.uk/money/petrol-prices-high-filling-up-27178818 Why are petrol prices so high when it could cost Brits £100 a tank to fill up?