In a concerning development for motorists, petrol prices in the United Kingdom have reached a new peak, hitting 150 pence per liter. This represents an alarming increase of over 3 pence per liter since the start of April and a substantial 9 pence rise since the beginning of the year. The ramifications of this surge are significant, as it translates to an additional £5 expense for filling up a typical family car compared to the start of the year, according to RAC spokesman Simon Williams.
Williams attributes this surge in petrol prices to two primary factors: the escalating cost of oil and the weakening of the British pound, which collectively make it more expensive for retailers to acquire new fuel supplies. The increase in oil prices has been fueled by ongoing tensions in the Middle East, leading to a recent breach of the $90-a-barrel mark. However, there has been a slight decline in oil prices in the past week due to easing fears of further escalation between Iran and Israel. As of yesterday, Brent crude was trading at $87.65 per barrel.
Another concerning aspect revealed by MPs is the substantial increase in profit margins by fuel retailers since the onset of the pandemic. The profit margin on diesel has surged to 14 pence per liter, significantly higher than the long-term average of 8 pence. This has resulted in diesel prices reaching 159 pence per liter.
Despite these price increases, it’s important to acknowledge the role of The Sun’s successful Keep It Down campaign, which has helped to mitigate the impact by freezing fuel duty. Without this campaign, petrol and diesel prices would likely be even higher, adding further burden to motorists.
