Cost of filling average car hits £100 as petrol prices soar Business

The Competition and Markets Authority (CMA) has said that if evidence is found the 5p reduction in fuel duty has not been passed on it will launch an investigation, with fines for offending retailers possible.

It came as the Organization for Economic Co-operation and Development (OECD) said the UK would suffer the weakest growth next year of any developed country as the war in Ukraine fuels the inflation.

Growth will decline from 7.4% last year to 3.6% this year before coming to a complete halt in 2023, the influential think tank said as it urged Rishi Sunak to consider tax cuts to help businesses and consumers.

The spike in fuel prices was first triggered by gas supply complications due to Covid lockdowns, but intensified after Russia invaded Ukraine in February.

Rising petrol prices are just one aspect of the financial strain on households that will see the biggest drop in household disposable income since records began in the 1950s, according to official government forecasts.

Energy bills have more than doubled in a year, tax hikes began last month and inflation is expected to top 9% in 2022, reducing real wages.

The cost of living crisis has been identified by Boris Johnson’s advisers as one of the biggest policy challenges for years to come, combined with the threat of a recession later this year.

A £22billion package was announced recently by Rishi Sunak, the chancellor, to mitigate rising energy prices, but already pressure is mounting again from the PMs for more help.

The average pump price hit 182.31p a liter on Wednesday after jumping more than 2% in just 24 hours earlier in the week, marking the biggest one-day rise in 17 years.

In some places this means petrol has overtaken diesel as the most expensive fuel per litre, although on a national basis average diesel prices have also hit another record high of 188.05p, figures show. of RAC.

The final jump takes the cost of filling a 55-litre family car to £100.27. A full tank of diesel now costs £103.43.

RAC’s Simon Williams said: ‘It’s a really bleak day today for drivers with petrol now crossing the utterly depressing £100 per tank threshold.

“With average prices so high, there will almost certainly be upward inflationary pressure, which is bad news for everyone.”

The Government’s 5p fuel tax cut, announced on March 23 when the average liter cost 177.5p, was effectively reversed in mid-May when prices hit a new record high of 178.4 pence.

Price comparison website PetrolPrices said the most expensive price charged is 202.9p per liter at BP sites on the A1(M) near Sunderland, Tyne and Wear; the A1(M) near Wetherby, West Yorkshire; the M4 near Chippenham, Wiltshire; and the M6 ​​near Burton-in-Kendal, Cumbria.

The Prime Minister’s spokesman said the Competition and Markets Authority (CMA) has the power to launch an investigation into whether the duty reduction has been passed on.

“We know there has been variation in this area and we want this to trickle down to all service stations. We’re not confident this is happening across the board,” the spokesperson said.

“The CMA said if they found evidence that the reduction was not being passed on, it would mean the competition was not working and they could launch a formal investigation. We would obviously support them wholeheartedly.”

The Petrol Retailers Association, which represents independent petrol stations, declined to respond to the remarks when approached by the PA news agency.

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This notice was published: 2022-06-09 09:50:00

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