Price of petrol at the pumps hits unprecedented £7 A GALLON 


The fallout from the war in Ukraine was felt on the forecourts yesterday as motorists began to pay £7 a gallon for the first time.

Average prices around the UK broke through the unwelcome milestone when the average price of ordinary unleaded petrol jumped above 154p a litre, blamed on the soaring cost of oil in recent weeks.

The price of petrol has risen by 5p since last weekend, and on Thursday it shot up more than 1.3p from the previous day, according to the RAC.

The price of diesel stands at around 158p a litre.

Average prices around the UK broke through the unwelcome milestone when the average price of ordinary unleaded petrol jumped above 154p a litre, blamed on the soaring cost of oil in recent weeks

Average prices around the UK broke through the unwelcome milestone when the average price of ordinary unleaded petrol jumped above 154p a litre, blamed on the soaring cost of oil in recent weeks 

Only a year ago – with the country in the grip of the pandemic – petrol was 123.7p a litre – £5.62 a gallon – and diesel 126.83p.

Filling a typical 55-litre fuel tank will now cost about £17 more than a year ago – £85 against £68 last spring.

Motorists who use pricier forecourts – the likes of BP, Shell and Total tend to be more expensive than the supermarkets – are paying even more. And drivers who fill up at motorway service stations are paying an average of 170p a litre.

Although petrol is sold by the litre, vehicle economy is still rated in miles per gallon.

The imperial measure remains an important indicator for engine performance, as well as being recognised by older motorists. There are about 4.5 litres to a gallon.

It has been a decade since the price of petrol soared through the £6 gallon mark. Petrol prices are often used as indicators of inflation over the years since petrol reached the £1-a-gallon barrier in June 1979 – or 22p a litre by comparison.

Although official average figures are not released until tomorrow but the latest figures on Friday showed that unleaded petrol hit 153.5p a litre on Thursday. Experts said that – with the regular daily rises – the price was certain to have gone above 154p a litre.

Motorists who use pricier forecourts ¿ the likes of BP, Shell and Total tend to be more expensive than the supermarkets ¿ are paying even more. And drivers who fill up at motorway service stations are paying an average of 170p a litre

Motorists who use pricier forecourts – the likes of BP, Shell and Total tend to be more expensive than the supermarkets – are paying even more. And drivers who fill up at motorway service stations are paying an average of 170p a litre

Simon Williams, of the RAC, said: ‘Many won’t be able to comprehend petrol has hit the miserable milestone of £7 a gallon. For many older drivers it was a barrier they never thought would be breached.

‘The Chancellor has to do something. The VAT element – on the current rate of 20 per cent – is more than 25p.

‘The RAC is calling on the Treasury to look at an emergency temporary cut in the VAT rate levied on fuel to ease some of the pain drivers are facing and to better protect them from upcoming rises. Cutting the rate to 15 per cent would cut it by 6p a litre – leaving the Government to still take 19p a litre at current prices.’

He added: ‘The sudden $10 jump in the oil price to $113 a barrel last week was the reason for the rise in prices.’

The price of Brent Crude oil stood at $118 yesterday.

Petrol price rises will also force inflation, currently at 5.5 per cent, to rise further, heaping pressure on Chancellor Rishi Sunak to act.

Sarah Coles, senior personal finance analyst at investment platform Hargreaves Lansdown, said: ‘Rising petrol prices have a knock-on effect on inflation. Not only do they directly hit the pockets of families, they lead to other price rises as, for example, food producers and haulage firms pass on the higher costs. Anything manufactured or delivered is at risk of going up in price.’

She added: ‘With the cost of living rises continuing, the Budget is the golden opportunity to go back to the decision to raise National Insurance. At some point the money needs to be raised to pay for Covid, but now is not the time.’

The pandemic can also be blamed for the rising cost of oil.

Luke Bosdet, from the AA, said: ‘We were already seeing prices going up because of the oil industry not having enough capacity after cutting production in Covid.

‘As countries came out of lockdowns they needed more and more fuel and oil. The oil producers have been slow to ramp up output.

‘That was before the Ukraine invasion, which has turned steady rises into much bigger ones as supply from Russia has fallen. But you can save 3p to 4p per litre depending on where you fill up.’

Petrol hit £1 a gallon – the equivalent of 22p a litre – in June 1979 just after Margaret Thatcher was first elected. Back then, fuel duty stood at 30p a gallon and VAT was 12.5 per cent – now duty is 58p a gallon along with VAT at 20 per cent.

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