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Saturday 16 October 2021 8:25 am  |  Updated:  Monday 18 October 2021 11:47 am

Petrol prices 2p away from record high

By: Ilaria Grasso Macola

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Drivers are still paying too much for their fuel, with retail margins “significantly” above historic levels, according to the UK competition watchdog.
The Competition and Markets Authority (CMA) said that the fuel market is still “failing consumers” a year on from its first report that laid bare the problems in the sector.

The pump price for a litre of petrol sold at UK forecourts has reached 140.22p, the highest since September 2012.

Data from the RAC Fuel Watch showed that fuel prices – which have gone up 26p a litre in the last year – are two pence away from the record high of 140.24p per litre that was registered in April 2012.

“Our data shows we haven’t seen the petrol price at this sort of level since September 2012, and we’re now worryingly close to the all-time average UK price high of 142.48p that was hit in the same year,” said RAC’s fuel spokesperson Simon Williams.

“At a time when households and businesses are facing spiralling prices in other areas this is a huge concern.”

According to the motoring organisation, the main reason behind the spike in prices is the rising costs of oil that have doubled from $41 to $83 per barrel.

“While the cost of oil has more than doubled in a year, the price drivers pay at the forecourt is compounded by the fact there is nearly 58p in fuel duty charged on every litre,” added Williams.

Not only are drivers paying more as a result of rising oil prices, but they are also facing a VAT increase compared with last year.

“And, on top of the delivery cost and the retailer’s margin, you’ve then got VAT which currently accounts for 23p a litre – this has added 4p more a litre in just a year,” he continued.

“With just two weeks to go until COP26, the uncomfortable truth for the government is that petrol prices are now reaching unprecedented levels and, along with rising domestic energy prices, will be putting a huge financial strain on households that depend on their vehicles and, in turn, the economy.

“We call on the government to take action and do whatever it can to help ease the burden on drivers.”

Read more

Tesco fuel sales drag up slowing growth

Tesco shares have reacted positively to the retailer's latest update.

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