£81 to fill up a family car as petrol prices hit record high

PETROL prices hit an alltime high over the weekend, triggering fresh concerns over the cost of living.

The average price of unleaded hit 148.02p a litre – surging past the previous record of 147.72p set on November 21 last year.

Experts warned motorists to brace themselves for record prices on a daily basis amid a ‘perfect storm’ of global factors, including the Ukraine crisis. It means petrol could surpass the milestone of 150p a litre within weeks.

Ministers are facing mounting pressure to take action by slashing motoring taxes.

The RAC, which wants 20 per cent VAT on fuel dramatically cut, warned spiralling costs will leave many household budgets on a ‘knife-edge’.

Meanwhile an AA poll found four in ten motorists are already cutting back on car use or other spending. The cost of filling up a typical family car with a 55-litre tank is now £81.41, up from £58.56 in May 2020, when petrol prices plunged because of the first coronavirus lockdown.

The typical motorist fills up twice a month, meaning monthly petrol bills have increased by more than £45 over this period – or nearly £550 a year.

Diesel has continued to climb, too. On Thursday it reached 151.21p a litre, beating the record set in November of 151.10p. On Sunday it hit 151.57p.

Diesel is predominantly used by the logistics and haulage industry, meaning the price of goods on supermarket shelves will likely rise further because increased delivery costs are usually passed on to shoppers.

Household budgets are already being squeezed by rising energy bills, inflation and, from April, the 1.25 percentage point national insurance hike. Experts warned petrol and diesel prices are likely to rise further because tensions with Russia – the world’s thirdbiggest oil producer – have spooked global markets.

Meanwhile, global oil prices have soared, with a benchmark barrel of Brent Crude nearing $100 – a price not seen since September 2014.

It is up nearly 60 per cent from about $60 last February amid growing demand as the pandemic subsides and economies reopen.

Simon Williams, RAC fuel spokesman, said: ‘New records could now be set on a daily basis in the coming weeks... We’re on a knife-edge when it comes to pump prices.’

Luke Bosdet, AA fuel spokesman, said ‘The cost-of-living crisis has been ratcheted up yet another notch, tightening the vice on family spending when it faces other pressures from impending domestic energy cost and tax increases.’

Howard Cox, founder of the FairFuelUK campaign group, renewed calls for ministers to cut fuel duty, which accounts for 57.95p of every litre of petrol or diesel bought.