Petrol prices: RAC spokesperson reacts to criticism from The AA
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Unprecedented petrol prices are adding to the financial headaches many Britons are contending with. The cost of heading to the pump has hit new records each day for the past month, according to research from the RAC Fuel Watch. The developments have left many giving close consideration as to if and when they can afford to fill up their vehicles. Express.co.uk explores how prices will eventually come back down.
The average cost for a litre of petrol is now 187p, while diesel is 193p.
A typical 55-litre family car also costs more than £100 to completely fill up when motorists head to the pump.
One of the key reasons why petrol prices have been rising is because of the Russian invasion of Ukraine.
Moscow is one of the largest oil exporters in the world and it is being targeted by economic and trading sanctions.
These have helped to create potential supply concerns, pushing up oil prices.
Britain, like many countries, has yet to find a long-term alternative to Russia’s oil exports.
By the end of 2022 European Union (EU) leaders have committed to ending most Russian oil imports.
While the UK has also pledged to block all of the oil it receives from Russia by the end of the year – Moscow currently supplies eight percent of its needs.
Even though it receives a small percentage of its oil from Russia, the UK is still feeling the gap of its supplies.
Until a long-term alternative is found, forecourts will continue to feel pressure from the Russian invasion.
Alternatively, Government intervention could help to bring petrol prices back to somewhat normal levels again.
Chancellor Rishi Sunak announced in March that he would be cutting the fuel duty tax by 5p a litre.
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However, the cost cutting measure has had no effect on the prices which millions of Britons could now struggle to pay.
Howard Cox, founder of the Fair Fuel UK Campaign, is calling for the Government to cut both fuel duty and VAT by 20p, to help alleviate the pressure on motorists.
But at present there are no indications that any additional help is forthcoming.
Crude oil prices and the dollar exchange rate play a significant role in determining prices at the pump, as crude oil is traded in dollars.
As such until wholesale costs begin to level off prices at the pump are likely to remain high.
Wholesale costs give the best indication of cost trajectory, and recent analysis from the RAC has shown a gentle decline.
The firm’s spokesman Simon Williams said wholesale prices dropped by 5p per litre last week.
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