Soaring petrol prices ‘forcing drivers to cut family budgets’

mOTOrIsTs are driving less or cutting back on essentials following a surge in fuel prices, a report found.

Prices at the pumps have hit their highest level since December 2014 as the value of oil has risen.

Over the may Day bank holiday weekend the average petrol price in the UK climbed to 124.22p a litre, while diesel hit an average of 127.08p.

Pump prices have jumped by more than 3p a litre since the start of the year, making filling up a 50-litre tank in a typical family car £1.50 more expensive. since early 2016, when both fuels averaged 102p a litre, the cost of filling up a tank of petrol has soared by £11.10, with a £12.50 jump in the price of a tank of diesel.

This is exerting significant pressure on household budgets and pushing many drivers to the ‘precipice’, according to a report by the AA. The motoring group warned Donald Trump’s decision to withdraw from the Iran nuclear deal could make the situation worse for drivers.

Following the Us President’s announcement on Tuesday night, the price of oil surged by around $2 a barrel yesterday to reach just under $77. This rise equates to roughly 1p a litre, or 50p for a full tank, according to the AA.

If this trend continues, the motoring group said some workers – particularly those in rural areas who have to drive long distances – may be forced to cut back on essentials. It warned that there are ‘echoes’ of the period of high oil prices between 2012 and 2014, when some of its members reported having to reduce the amount they spent on food.

After conducting a poll of 17,480 members, the AA found 15 per cent of them had already decided to drive less, with 9 per cent cutting back on family budgets and other spending to compensate, and a further 14 per cent doing both. This is a combined 38 per cent. To make matters worse, the survey was conducted in April when fuel prices were slightly lower.

Oil prices crashed to a 12-year low in January 2016 due to a massive oversupply, but Opec, the 14-strong cartel of oilproducing nations, and other major suppliers agreed to curb production to push up the price of oil. Experts fear one of the many consequences of mr Trump’s decision to pull out of the Iran nuclear deal and impose sanctions could be further price hikes at the pumps.

The AA’s Edmund King said: ‘Once again, we’re beginning to see the spectre of some drivers having to make a choice between cutting back on household expenditure or being able to afford to drive to work. With rising mortgage costs and higher pension contributions, more and more drivers are being pushed towards that precipice.’

‘Having to drive less’