Oil prices UK: Fuel costs hit ninth consecutive all-time high as ministers urged to cut VAT for drivers
Experts welcome ‘hint of better news’ as crude oil prices stabilise
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Your support makes all the difference.The cost of petrol and diesel in the UK has hit an all-time high for the ninth consecutive day, as the RAC warned that drivers will be seeing “unbelievably high prices on forecourts”.
The average prices of petrol and diesel hit 161.1p and 170.1p per litre on Thursday, according to data firm Experian Catalist – up respectively by 8p and 13p in a week.
However, costs varied dramatically, with petrol hitting more than £2 per litre at some London forecourts – prompting the RAC to urge chancellor Rishi Sunak to slash VAT on petrol and diesel to 15 per cent.
There was, however, a “hint of better news” as crude oil prices stabilised below $120 a barrel after the UAE signalled it would push other oil exporting nations to boost production in an attempt to fill some of the gap left by Russia.
This “could lead, in a week or so, to a slight slowing in the daily pump price increases, and records being broken less frequently”, the RAC said, although experts warned that oil prices would remain volatile and could spike further.
Drivers ‘will be seeing some unbelievably high prices on forecourts'
As the average prices of petrol and diesel in the UK hit record highs this week, RAC fuel spokesman Simon Williams said: “A tank of petrol is now almost £88 while diesel has now gone over £92.
“Diesel unfortunately appears to be on a clear path to £1.70 a litre.
“As this is an average price, drivers will be seeing some unbelievably high prices on forecourts as retailers pass on their increased wholesale costs.
“But there was a hint of better news yesterday on the wholesale market with substantial drops in both petrol and diesel which could lead, in a week or so, to a slight slowing in the daily pump price increases, and records being broken less frequently.”
Oil price fall provides relief for UK households
UK households at last had some positive news about living costs on Thursday after two weeks of sharp oil price rises, my colleague Ben Chapman reports.
Yesterday, oil prices stabilised below $120 a barrel, after recent surges pushed the cost of filling up petrol tanks across the country.
Major disruption to oil supplies as Russia intensified its bombardment of Ukrainian cities had caused petrol and diesel prices to hit new record levels almost daily, adding to the squeeze facing British consumers.
Experts said upward pressures on petrol prices had eased after the United Arab Emirates signalled it would push other oil exporting nations to boost production.
Analysts shelved their most pessimist predictions of $200-a-barrel oil and said lower prices could provide some respite for struggling consumers, although any change in wholesale prices would take a few weeks to filter through to UK forecourts.
That means petrol could briefly hit £1.80 a litre before falling back down, according to estimates from Capital Economics, a consultancy.
Oil price fall provides relief for UK households but living standards still face hit
Petrol forecast to hit £1.80 a litre before falling back down
Good morning, we’ll be using this blog to provide you with live updates on the cost of fuel in the UK, as Vladimir Putin’s war on Ukraine hits global oil prices.
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