As the cost of living increases, the petrol price has risen to £100 in the UK.
Petrol prices have increased to 182.31p a litre. This left an average family car that costs £100.27 with a full tank.
Soaring prices have effectively erased the Government’s March 5p fuel duty reduction. This has prompted calls for another intervention. The fuel duty cut was also accused of profiteering, and there have been threats to name the companies that did not comply.
• The cost of a full tank of petrol hits £100 for first-time #UK Average tank of petrol (55 litres) now costs over £100 as average litre price reaches 182p, says RAC.
• Nearly £50 in tax alone 🇬🇧 (£16.67 is VAT, £32.74 is fuel duty)pic.twitter.com/I8hGJ9bI5V https://t.co/cdkgJUMy2n
— Share_Talk ™ (@Share_Talk) June 9, 2022
The official spokesperson for the Prime Minister said that they are still exploring all options. Transparency could play an important role.
“It is vital that the public understands the actions of each fuel retailer and we are looking at what other options we have in this area.”
The Organisation for Economic Cooperation and Development said that the UK would experience the lowest growth next to any other developed country because of the war in Ukraine.
According to the influential think tank, growth will fall from 7.4 to 3.6% last year before coming to a halt completely in 2023.
Rising fuel prices were initially triggered by problems with gas supply due to Covid lockdowns, but they escalated following Russia’s invasion in February.
Official government forecasts show that the greatest drop in disposable income in households since the 1950s records is due to the impact of rising petrol prices.
The energy bills have more than doubled in one year. Tax rises started last month. Inflation is expected to surpass 9% in 2022, reducing real wages.
Boris Johnson’s advisors have identified the cost of living crisis as one of the most important political challenges of the next years. This is in addition to the possibility of recession later this decade.
Rishi Sunak, the Chancellor, announced a £22 billion package to reduce the rise in energy prices. However, pressure from PMs for more assistance is already building.
After a jump of more than 2pc within 24 hours, Wednesday’s average pump price reached 182.31p per Liter. This was the largest one-day rise in 17 years.
It was evident that petrol was the most expensive fuel per litre in some areas, but diesel prices on a national level were up by more than a penny, reaching a new record high of 188.05p according to RAC figures.
This latest increase brings the price of filling up a 55-litre family vehicle to £100.27. The cost of a complete diesel fill-up is now £103.43
Simon Williams, RAC stated: “It’s a really dark day today for motorists with petrol now crossing the deeply depressing threshold of £100 a tank.
“With average prices so high, there is almost certain to be upward inflationary pressure which is bad for everyone.”
The 5p reduction in fuel duty, which was announced by the Government on March 23, when an average litre cost 177.5p per litre, was effectively eliminated by mid-May when prices hit a new record high of 178.4p.
PetrolPrices, a price comparison website, stated that the highest price charged by BP on the A1 (M) in Sunderland, Tyne and Wear, the A1 (M) in Wetherby West Yorkshire, the M4 near Chippenham Wiltshire, and the M6 close to Burton-in-Kendal Cumbria.
According to the Prime Minister’s spokesperson, the Competition and Markets Authority can launch an investigation into the possibility that the duty reduction was passed on.
“We are aware that there have been variations in that and we want it to be passed on at all fuel stations. The spokesman stated that they aren’t confident that this is happening across all stations.
“The CMA has stated that if they find any evidence that the cut isn’t being passed on, that would indicate that competition is not working. They could then launch a formal investigation. We would support them wholeheartedly.
When approached by PA News Agency, the Petrol Retailers Association (which represents independent filling stations) declined to comment.
Image via @tozzer121
If anyone reads this article found it useful, helpful? Then please subscribe www.share-talk.com or follow SHARE TALK on our Twitter page for future updates.
Terms of Website Use
All information is provided on an as-is basis. Where we allow Bloggers to publish articles on our platform please note these are not our opinions or views and we have no affiliation with the companies mentioned