Drivers facing 6p-a-litre surge in the price of petrol as AA warns price could soar to record levels

| August 17, 2012 | 0 Comments

  • Prices could rise to £1.50 a litre
  • Petrol prices have already edged up by 3.5p since mid-July

By
Ray Massey

19:58 EST, 16 August 2012


|

19:58 EST, 16 August 2012

Motorists face a 6p a litre hike towards a new record high at the pumps as fuel prices soar again, experts have warned.

New records could be set within a month, says the AA.

And petrol retailers said the prospect of the Chancellor slapping up to 7p a litre tax from two planned rises in the New Year could see prices as high as £1.50 a litre – or £6.82 a gallon.

Petrol prices have already edged up by nearly 3.5 p since mid-July and by 1/2p this week alone – with more rises in the pipeline, says the motoring group. Diesel is up by 3.19p, according to the AA.

On the rise: Petrol is selling at an average price of 136.06p a litre and diesel at 140.90p a litre

On the rise: Petrol is selling at an average price of 136.06p a litre and diesel at 140.90p a litre

A two car family has already seen a £10 rise in fuel costs over the last month.

The AA blames a steep rise in the wholesale cost of fuel since the beginning of August driven by a combination of rising oil prices and ‘speculators’.

That will feed through to about 6p extra per litre at the pumps, says the AA.

It means the cost of filling up a family Ford Mondeo with a 70 litre tank would rise by £4.20 per fill-up.

The alarming prospect is revealed today (MON) in a new AA Fuel report.

It has sparked renewed calls for Chancellor George Osborne to abandon the 3p per litre tax rise he has already deferred from August 1 to January 1.

Petrol is currently selling at an average price of 136.06p a litre and diesel at 140.90p a litre, says the AA.

A predicted rise of around 6p a litre would put prices close to the record prices set in April of 142.48p a litre for petrol and 147.93p per litre for diesel.

Retailers say it could climb to £1.50 a litre next year.

The surge has sparked calls for George Osborne to abandon the 3p-a-litre tax rise he deferred from August 1

The surge has sparked calls for George Osborne to abandon the 3p-a-litre tax rise he deferred from August 1

The AA says Britain’s 33 million motorists have enjoyed a 10 week respite from the highest prices, including the ‘distraction’ of the Olympics. But that will end when Britain gets back to work, it predicts.

At the ‘summer low’ at the beginning of July, petrol cost £130.8p a litre and diesel 136.12p.

The AA report notes: ‘A 2.5 per cent increase in UK pump prices over the past month risks putting road fuel costs back on the path that led to six weeks of record fuel prices earlier this year.

‘In the past month, average petrol prices have risen 3.34p a litre.

Diesel is up 3.19p a litre. Diesel is already more expensive than this time last year.’

And it adds:’Compared to this summer’s low-point for UK fuel prices on July 1 , UK drivers are now spending £4.85 million a day more on fuel.’

Competition between the supermarkets means that for the moment drivers are being ‘partially insulated from higher wholesale costs. ‘

But the AA’s head of public affairs Paul Watters said: ‘Falling pump prices in the UK lasted just 75 days and now they’re heading up at a rate which once again threatens to undermine the Bank of England’s inflation target. In six weeks, £10 has been added to the monthly petrol costs of a two-car family in the UK.

Petrol Retailers’ chairman Brian Madderson added: ‘This is really bad news for motorists and retailers alike. The full effect of the wholesale price increase of nearly 10p per litre since late June has yet to be passed on at the pumps ‘Average pricing for petrol across the UK has now risen to 136p per litre and could yet return to 140p per litre by the end of August. This will affect the many families that have planned to take a post-Olympic holiday.’

Across the UK, the AA said Yorkshire and Humberside is the cheapest area for petrol with an average of 135.0p a litre. East Anglia is the most expensive region at 136.1p a litre, beating Northern Ireland.

The west side of the country is suffering most from rising diesel prices, with Wales and the South West both topping the table at 140.9p a litre while drivers in Yorkshire and Humberside are enjoying the lowest average price of 140.0p.

Here’s what other readers have said. Why not add your thoughts,
or debate this issue live on our message boards.

The comments below have not been moderated.

Think about the planet and the damage your co2s are making…you wont need a car if we carry on the way we are going don’t make it too late…always consider your planet…drive less if you can.

If the pretrol tax increases , just blockade the roads until the fat chump Osborne backs down.

Three years ago I cut my driving down from just over 20,000 miles a year to 8000 last year and so far this year I have done 1600 miles with another 5 months to go so I reckon I would of done about 3000 miles by the end of the year!!
I wrote a comment to the DM sometime ago saying ” I will not pay this extornionate price for petrol” and that I will not use my car unless I need to and I am true to my word. You can really do it if you want and the secret word in life is “Willpower”!!!!

Petrol is cheap – it has been for years. Fill your tank – hand over 100 quid – and you drive away with 20 pounds worth of petrol. Smile sucker – you just got hit with 80% TAX.

To blame the increase in the wholesale price is just a smoke screen. When wholesale prices fell dramatically we did not see a dramatic decrease in prices.

No problem. Ditch the car and travel by train. Yeah right.

‘Speculators’ whoever they are, should not be able to hold the Country to ransom, which is what they are doing. Name and shame them – for a start…..

Look at the sums; in the UK we are expected to pay nearly £7 per gallon, in the USA it is more like $3.50 (yes $!). The Government is ripping us all off with its tax policy!

What’s the reason now for the rises. They used the wars last time now what is it. Why is petrol so cheap in America?

Why do all these government bashers blame them for the price rises that have already started to happen with more to come. The current increases have absolutely nothing to do with the government, the same increases are world wide, simply because fuel is a global commodity bought in the world markets in dollars.
The people to blame are the greedy Oil producing countries and the international traders who bid for off shore tanker loads of already refined petrol and diesel. When these greedy speculators sense the slightest improvement in the world economic climate, they dive in and buy putting the prices up, however when the economic news is bad they panic and sell bringing prices down, just like the stock market, whichever government was in power, they cannot influence these price fluctuations without increasing or decreasing their tax take, which as we know they do at least once a year to help pay for state benifits amongst other important things governments need the revenue for.

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