Gasoline prices rose more than 2 cents in just 24 hours yesterday, marking the biggest daily increase in 17 years.
Prices rose from 178.50p per liter on Monday to 180.73p per liter on Tuesday, an increase of 2.23p. The cost of diesel also increased by 1.37p over the same period, from 185.2p to 186.57p.
The previous record high was reached on 4 September 2005 when the price per liter of unleaded jumped 2.29p from 92.29p to 94.58p.
The price hike means it currently costs £99.40 to fill a 55-litre family car with petrol – the highest amount ever – or £102.61 for diesel.
If prices continue to grow at a similar rate, the cost of filling the same tank of petrol will reach £100 by Thursday June 9, according to the CARs.
“An unfortunate landmark,” said RAC fuel spokesman Simon Williams. “These are unprecedented times in terms of fuel cost accelerating on the forecourt. Unfortunately, it seems that we are still far from the top.
Earlier in the week, the RAC claimed the UK was on the verge of a fuel crisis. He called for urgent “radical government intervention” to prevent a national fuel crisis.
“More radical government intervention is urgently needed, whether in the form of further fuel tax cuts or VAT cuts,” Williams said on Monday.
“As things stand, drivers will surely not be able to cope unless something is done to help them… This is quickly becoming a national crisis for the country’s 32 million motorists as well as countless companies.
The rise was driven by soaring wholesale oil prices, but analysts predict the price per barrel will average $135 (£107.66). It needs to hit $160 (£127.66) for petrol to hit £2 a litre.
Sanctions imposed on Russia following its invasion of neighboring Ukraine have also contributed significantly to the rise in fuel prices. The country is one of the biggest oil producers in the world and supplied 18% of the UK’s diesel fuel last year.
This, coupled with a weak pound and strong post-Covid global demand, has sent prices soaring. However, the wholesale price of petrol yesterday fell by 5 pence, raising hopes for price stabilization.
“If this price is maintained in the coming days, it could stem the tide of daily record gasoline prices,” Williams said.
More about this article: Read More
Source: www.autocar.co.uk
This notice was published: 2022-06-08 11:36:48
