Fuel prices continue to rise to record levels
Petrol has hit 149.67p per litre and diesel 153.05p per litre, with further price rises expected
Average fuel prices in the UK have yet again hit a new record high.
Petrol prices increased to 149.67p per litre on Wednesday, while diesel reached 153.05p per litre – the fourth record high in one week.
Costs have been rising all throughout the month of February. A fortnight ago, petrol hit a record high of 148.02p per litre, while diesel rose to 151.0p per litre.
The rise has been exacerbated by the growing crisis in Ukraine this week, the RAC has said, warning of additional rises despite Russia supplying only 6% of the UK’s crude oil.
“Russia’s actions will now push petrol pump prices up to £1.50 very soon," said Simon Williams, RAC fuel spokesman. “The question then becomes where will this stop and how much can drivers take just as many are using their cars more and returning to workplaces.”
Oil prices have now hit $106 per barrel, meaning wholesale fuel prices will rise further, and the RAC believes the cost could funnel down to consumers.
“If the oil price were to increase to $110, there’s a very real danger the average price of petrol would hit £1.55 a litre," said Williams.
“This is the worst possible combination for drivers, as it will push already rising prices higher still and worsen the cost of living crisis.
“Drivers need to brace themselves for what’s to come, with many on lower incomes having to make difficult choices as a result of needing to put fuel in their cars.”
Russia is the third-largest producer of oil in the world.
The RAC suggests the price hike would “cause untold financial difficulties for many people who depend on their cars”, with the average cost of a fuel tank of fuel setting people back £85.
If prices were to rise to $120 a barrel, fuel could rise to £1.60 per litre, and it's believed that prices could even jump higher if the situation in Ukraine isn't swiftly resolved.
“You can forget about petrol at £1.70 a litre, which is where it's heading now,” Tom Tugendhat, chairman of the Foreign Affairs Committee, told BBC Radio 4. “It will be significantly higher.”
Drivers are being urged not to panic-buy fuel.
"For the UK, it's a price issue, it's not a security supply issue,” National Grid boss Steve Holliday told the BBC.
"We already know that we've got consumers that are already experiencing huge jumps in their energy bills, so this is really very unwelcome."
