Drivers suffer record monthly surge in fuel prices despite cut in duty
Drivers were hit by the largest monthly spike in pump prices on record in March, despite a cut in fuel duty, according to new analysis.
The RAC said the average cost of a litre of petrol at UK forecourts rose by 11.6p to end the month at 163.3p. Diesel prices roseevenmoresharply,up22.1p per litre to 177.3p.
Thepreviousbiggestmonthly increases in average fuel prices in records dating back to 2000 were October last year for petrol(7.4pperlitre)andmay2008 for diesel (8.4p per litre). Last month'sincreasescamedespite Chancellorrishisunak’s5pper litre cut in fuel duty on March 23.
Theracsaidtheriseinpump prices was driven by surging wholesale costs caused by the war in Ukraine and drivers would have been hit by even higherpriceswithoutthecutin fuel duty.
RAC fuel spokesman Simon Williamssaid:"march2022will go down in the history books as
one of the worst months ever when it comes to pump prices.
"Without question, these figures show in the starkest possible terms just how much fuel prices are contributing to the cost-of-living crisis.
"Drivers might well be feeling aggrieved that the Chancellor's 'historic' fuel duty cut announced in the spring statement just two weeks ago has done nothing to protect them from price increases.
"The fact pump prices have fallen so little reflects the fact that the cost to retailers of buying fuel had been going up ahead of the spring statement. Sadly this Easter, traditionally the biggest getaway time of the year on the roads, is shaping up to be the costliest on record for drivers and there's very little they can do to escape the high cost of filling up."
Meanwhile, the Liberal Democrats are campaigning for a tax cut after calculating that thetreasurywillpocketalmost £40billioninextravatreceipts due to soaring inflation.
Party analysis of Office for Budget Responsibility figures shows that Mr Sunak will receive a VAT windfall of £38.6bn over the next four years, with working households facing a £428 higher VAT tax bill in 2022-23 alone due to rising shop prices.
The Lib Dems are calling for anemergencycuttovat,slashingthetopratefrom20percent to 17.5 per cent for one year, which they predict would save families an average of £600.