Price of a full tank of petrol soars £10 in just two years
DRIVERS were warned last night that the era of cheaper fuel may be over as it emerged that the cost of filling up a typical family car with petrol has soared by more than £10 in less than two years.
Last month’s rise of almost 0.5p a litre sent unleaded petrol to an average of 121.11p, the highest since December 2, 2014.
Diesel also rose, from 123.06p to 123.46p a litre. It means the cost of filling a family diesel with a 55-litre tank has surged £4.64 since last July, while filling a petrol car is £3.73 more expensive. Then petrol cost 114.33p a litre, while diesel cost 115.02p.
But since early 2016 when both fuels averaged 102p a litre, the cost of filling up a diesel has soared by £11.80, with a £10.51 jump for a tank of petrol.
The crippling rise has been driven by the increasing cost of oil which rose to around $66.61 a barrel at the end of last month, its highest level since May 2015. Oil is now trading at just under $68.
RAC spokesman Simon Williams said: ‘ Sadly, December was the month oil reached its highest point for over two and a half years – something which motorists are now feeling the effect of at the pumps.
‘It’s hard to see pump prices getting much cheaper in the early part of 2018.
‘ Unfortunately, the good times of lower cost fuel appear to be over and it’s probably now far more likely that we will see them going up as Opec’s oil production cuts are starting to have the desired effect of reducing the global oil glut and pushing the barrel price higher.’
Oil prices crashed to a 12year low in January 2016 due to a massive oversupply which was fuelled in part by the fracking boom in the US and the slowdown of major economies such as China.
But Opec, the oil producing cartel of nations, has agreed to curb production to push up the price of oil.
Chancellor Philip Hammond eased the pressure on drivers in November’s Budget by abandoning reported plans to raise fuel duty, ending a sevenyear freeze.
But campaigners complain that UK motorists still pay the highest fuel duty for diesel in Europe and the third highest for petrol. Around 78p is paid in taxes on a litre of diesel, including VAT. This effective tax rate of 63.6 per cent compares to 54.8 per cent in Germany, 49 per cent in Spain and 58.1 per cent in France.
Fuel retailers including major supermarkets have also been criticised for profiting from motorists by being slow to pass on falls in their wholesale prices while being quick to raise the cost of fuel when oil prices rise.
With drivers also hit by a surge in penalties for parking offences or getting caught in bus lanes, there have been concerns they are being
‘World’s highest taxed drivers’
treated like ‘cash cows’ by the Government, fuel retailers and councils.
As rail commuters this week faced the biggest fare rise in five years, with average tickets rising 3.4 per cent, those making the commute by car are also seeing their travel costs surge.
Howard Cox, founder of the FairFuelUK campaign group, which has 1.5million supporters, said: ‘With New Year train fare hikes compounding unchecked rocketing pump prices, the highest taxed drivers in the world have no other choice but to continue to be the Government’s and greedy oil speculators’ cash cows just to use their vehicles for work and in their daily lives.’
Councils have been accused of turning the screws on drivers after making a record £820million profit from parking in 2016. Local authorities have been squeezing more money out of drivers for parking on their own street as well as in town centres and local car parks. Councils are legally obliged to plough profit from parking back into improving local transport.
Drivers buying new petrol and diesel cars have also been hit with higher vehicle excise duty. And those with older cars, particularly diesels, face the threat of hefty charges for venturing into town centres as councils explore plans to crack down on pollution.
The RAC said last night that one consolation for drivers was that last month’s shutdown of the North Sea Forties oil and gas pipeline for repairs did not cause the price of oil to increase as many had expected.