Petrol prices surge in biggest one-day jump for 17 years - THE TELEGRAPH
JUNE 08, 2022
Petrol prices have surged by more than 2p in just 24 hours as the cost of filling up a full tank of fuel hurtles towards £100.
The average pump price hit 180.73p per litre on Tuesday, up from 178.50p a day earlier, marking the biggest one-day increase in 17 years.
Diesel prices were also up by more than a penny to hit another record high of 186.57p, according to RAC figures.
The latest jump takes the cost of filling up a 55-litre family car to £99.40, with prices set to break through the £100 mark as soon as tomorrow. Diesel drivers are already paying £102.61 to fill up a full tank of fuel.
Simon Williams, RAC fuel spokesman, said: “These are unprecedented times in terms of the accelerating cost of forecourt fuel. Sadly, it seems we are still some way from the peak.”
The motoring body said Asda had increased its average forecourt price by nearly 5p in a single day. It warned the move would likely spur rival supermarkets, which dominate fuel retailing, to raise their prices as well.
But rival AA blamed RAC’s ‘reckless speculation’ for rising fuel prices, plunging Britain’s two main motoring bodies into a row amid a deepening crisis for drivers.
Earlier this week, the RAC warned motorists to brace for prices hitting £2 a litre after Goldman Sachs forecast average oil prices of $135 a barrel for the rest of the year.
While the AA said the pump price rises were “not unexpected”, it argued that its rival’s “reckless speculation” was only driving prices higher.
Luke Bosdet at the AA said: “Reckless speculation is leading to rip-off prices at the pump. Yesterday’s more than 2p-a-litre leap in average UK petrol prices is a huge shock and fuels concern that speculation of a £2 litre just gives the fuel trade licence to pile on extra cost and the misery.”
The RAC refuted the accusation and said retailers were basing their prices on wholesale costs rather than speculation.
Oil prices have climbed steadily over recent months as Russia’s invasion of Ukraine sparks supply fears, compounding a rebound in demand as economies recover from the pandemic.
Brent crude has risen past $120 a barrel this week amid doubts that increased output targets among major producers will help ease tight supply.
Surging costs on forecourts are exacerbating inflation and piling more pressure on household budgets as the cost of living crisis escalates.
Data published by the Business Department this week showed UK fuel prices have jumped at four times the rate of inflation.
Mr Williams at the RAC said further government intervention was “urgently needed”, such as a further fuel duty cut or a VAT cut.
He said: “As it is, drivers surely won’t be able to cope unless something is done to help.
“This is fast becoming a national crisis for the country’s 32m car drivers as well as countless businesses.”