Demand for urgent action as cost of petrol hits £100 per tank

The price to fill up a typical family car with fuel has hit the £100 mark for the first time, sparking the AA to call on the government to cut fuel tax by a further 10p.

It now costs an owner of a car with a 55-litre tank, such as an Audi A3 or a BMW 3 Series£100.27 to fully fill up with unleaded, and £103.34 with diesel.

This has come after petrol prices rose yesterday by 1.58p to 182.31p per liter. Diesel prices rose by 1.48p to 188.05p.

On Tuesday, the price of petrol rose by more than 2p in just 24 hours – the biggest daily increase in 17 years.

The latest rise has sparked an angry response from AA president Edmund King, who has demanded the government “act urgently” to reduce the record fuel prices, which are “crippling the lives of those on lower incomes, rural areas and businesses”.

He has also called on ministers to introduce a fuel price stabilizer, which would work by reducing fuel duty when prices go up and increasing it when prices drop.

King said: “A fuel price stabilizer is a fair means for the Treasury to help regulate the pump price but alongside this they need to bring in more fuel price transparency to stop the daily rip-offs at the pumps. The £100 tank is not sustainable with the general cost of living crisis so the underlying issues need to be addressed urgently.”

Meanwhile, RAC fuel expert Simon Williams labeled the fill-up rise a “truly dark day”, adding: “With average prices so high, there’s almost certainly going to be upward inflationary pressure, which is bad news for everybody.”

Earlier in the week, the RAC claimed the UK was on the brink of a fuel crisis. It called for urgent, “radical government intervention” to prevent a national fuel crisis.

“More radical government intervention is urgently needed, whether that’s in the form of a further reduction in fuel duty or a VAT cut,” Williams said on Monday.

“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 32 million car drivers as well as countless businesses.”

This rise has been driven by the souring costs of wholesale oil, but analysts predict the price of a barrel will average out at $135 (£107.66). It needs to reach $160 (£127.66) for petrol to hit £2 per litre.

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