Pump prices soar to three-year high

Drivers forced off road by fuel costs as AA warns that rising world oil tariffs will bring even more pain

FUEL prices have reached a three-anda-half year high, forcing motorists off the road as driving becomes less affordable, figures from the AA have shown.

Average petrol pump prices across the UK have risen to £1.26 a litre – up from £1.21 a month ago and the highest level since 2014. Meanwhile, diesel is now £1.28 per litre, up from £1.24 in April and also a five-year record.

The AA figures show it is typically cheaper to fill up in a supermarket, while an “astonishing gap” of 5.2p per litre has opened up between the big brands and non-supermarket filling stations.

This is because non-supermarket stations are quicker to pass on the rising wholesale cost to their customers, the AA said. Over the past month, average supermarket petrol prices have gone up by 3.3p, while non-supermarket prices have risen by 4.1p a litre.

A predicted rise in world oil prices could send petrol costs even higher, to more than £1.40 per litre for both petrol and diesel, the report said.

Edmund King, president of the AA, said: “Nearly two in every five drivers are already cutting back on car use, non-fuel spending or both.

“But what is even more disturbing are predictions of oil above $100 [a barrel] by banks and investment funds pouring money into the market. As for road fuel rising to ‘record levels’ … did the oil market and fuel retailers learn nothing from 2008?

“This time, however, a financial transaction tax is on the table of one of the UK’S major political parties – a policy that will gather support if oil market gambling gets out of control again.”

Shell has the highest petrol prices at £1.29 per litre while Asda, Morrisons and Sainsbury have the lowest at £1.21 per litre, the AA’S data shows.

It comes just months after motorway service stations came under fire after they were suspected of ripping off customers by charging too much for petrol, where drivers were paying on average 21p more per litre – typically £15 more for a full tank.

Chris Grayling, the Transport Secretary, highlighted the issue to the Government’s competition watchdog and said that drivers felt “exploited”.

Calling for a probe into Moto, Welcome Break, and Roadchef, the three biggest service station operators, he said at the time: “I am concerned that prices which are higher than other forecourts may exploit users in a situation where there is less choice and discourage motorists from re-fuelling when, for safety reasons, they should.”

Service-station operators said higher fuel prices were required to cover their operating costs.