Motorists are being warned that rising fuel prices could lead to a winter of increased costs. Yesterday’s petrol price reached an all-time high.
According to the AA, the average UK petrol price was 142.94p per litre. This beats the previous record of 0.46p set in April 2012.
Diesel fell to 146.5p a Liter on Sunday, just below its all-time high at 147.93p.
RAC data shows the price of unleaded has rocketed by 28p a litre in a year from 114.5p in October 2020, adding £15 to the cost of filling up a family car.
The motoring company called it a ‘truly dark day for drivers’, which coincides with the expansion of London’s Ultra Low Emission Zone (ULEZ) that will leave another 130,000 drivers facing £12.50 a day charge.
According to the motoring group, fuel price increases are due in large part to the rapidly rising cost of oil. It has gone up from $40 per barrel a year earlier to $85 now.
However, it states that E10, an improved petrol blend with less carbon, also had an impact.
Simon Williams, a spokesperson for RAC, stated that “This is truly a dark time for drivers, and one we hoped would not see again after the high-priced April 2012”.
“This will affect many households’ budgets and have knock-on effects for the wider economy.
The big question is, where will it stop and at what price will petrol reach? We could see the average price of petrol rise to 150p a Liter if oil prices reach $100 per barrel.
The margin that retailers take on every litre of liquid sold is also higher than it was before the pandemic. This puts further upward pressure on prices.
Diesel reached 146.50p a litre last Sunday, still 1.43p below its April 2012 record of 147.93p. This graph shows the price changes since 2008.
Experts warned that Petrol could rise again this winter, setting a record price for petrol at 142.94p
Drivers in London were doubly hit yesterday as the expansion of the ultra low-emission zone was introduced meaning they faced a £12.50 cost of their journey if they drove in the capital
Small businesses: Fuel price increases are ‘pushing’ us to the brink
Today, small business owners said that price increases were pushing them ‘to the brink.
Drew Robinson, founder at JToB Apothecary, said: ‘As a small business with tight margins, every cost hike wherever it is has a significant impact.
“As I sell at farmers market, which I have the responsibility of driving to, my income is dwindling and I’m powerless over it. These increases in petrol prices are threatening my business.
Dominik Lipnicki, Director at Your Mortgage Decisions Ltd, said: ‘This is yet another kick in the teeth for people already struggling with a hike in energy prices and inflation as a whole.
“The Bank of England is under increasing pressure to raise the base rate, which is the fear of homeowners.”
Meanwhile, Jez Lamb, founder at Beers@No.42, said rising cost of fuel would leave business owners having to decide whether to pass cost increases onto customers.
He said, “Another day, another problem for the average small business owner,” especially for those whose jobs involve transporting, delivery, and drop-offs.
“This is yet another price hike that we have to accept among all our rising costs.
“We’ll undoubtedly see couriers raise their prices under the banner a ‘fuel surcharge”. But do we pass this on to our customers who are already being affected by rising prices elsewhere? It’s yet another problem and challenge to be overcome.
Ironically, at the end of last week, wholesale diesel to be delivered to forecourts was still around 6p a litre more expensive than petrol – as it had a fortnight earlier.
The recovery from pandemic lows, 106.48p in the middle of May 2020, has seen petrol rise rapidly, with short lulls this August at 135p/litre and November 2020 at 114p/litre.
This compares to a two-and a half year rebound after the financial crash of 2008-9. This went in two steps, from 86p per liter in January 2009 to 121.5p per litre in May 2010, and then above 137p by May 2011. That was an increase of 51p per litre.
Fuel duty increased from 52.35 pence to 58.95 pence a litre in January 2011 to 52.35 pence a litre. It then fell to 57.95 pence a litre in March 2011. The VAT rose to 20%.
Simon Williams, spokesperson for RAC Fuel, stated that despite the fact that many people aren’t driving as much now as they used to due to the pandemic of the automobile, drivers tell us that they are still dependent on their cars, and that many don’t have the choice to drive.
“Those with lower incomes who must drive to work will have a hard time finding the extra money they need to buy the petrol they require.
“We urge the Government, to temporarily reduce VAT and for the largest retailers to bring back the amount they make on every petrol litre to the level before the pandemic.
Luke Bosdet is the spokesperson for AA’s fuel prices. He said that regardless of whether it’s down oil producers, market speculators or Treasury taxes, record pump prices are telling drivers with the means to switch to electric.
Poorer motorists are facing daily charges to drive in urban areas. There is no escape. It’s a return on cutting back on other consumer expenditure, such as heating or food, in order to keep the car they use to get to work.
Today, small business owners said that price increases were pushing them ‘to the brink.
Drew Robinson, founder at JToB Apothecary, said: ‘As a small business with tight margins, every cost hike wherever it is has a significant impact.
“As I sell at farmers market, which I have the responsibility of driving to, my income is dwindling and I’m powerless over it. These increases in petrol prices are threatening my business.
Dominik Lipnicki, Director at Your Mortgage Decisions Ltd, said: ‘This is yet another kick in the teeth for people already struggling with a hike in energy prices and inflation as a whole.
“The Bank of England is under increasing pressure to raise the base rate, which is the fear of homeowners.”
Meanwhile, Jez Lamb, founder at Beers@No.42, said rising cost of fuel would leave business owners having to decide whether to pass cost increases onto customers.
He said, “Another day, another problem for the average small business owner,” especially for those whose jobs involve transporting, delivery, and drop-offs.
“This is yet another price hike that we have to accept among all our rising costs.
“We’ll undoubtedly see couriers raise their prices under the banner a “fuel surcharge”, but do we pass this on to our customers who are already being affected by rising prices elsewhere? It’s yet another problem and challenge to be overcome.
Yesterday, Chancellor Rishi Sonak announced pay increases for seven million workers. He also confirmed the end of the pay freeze in the public sector and an increase to the national minimum wage.
He is under pressure to address the cost-of living crisis in his budget tomorrow.
Sadiq Khan calls expansion of ultra-low emission zone an ‘issue of social justice’ as new rules leaving 130,000 drivers facing £12.50 a day charge come into force despite business fears
Sadiq Khan today called the expansion of London’s pollution charge zone for older vehicles an ‘issue of social justice’ as new rules leaving 130,000 drivers facing a £12.50 a day charge came into force despite business fears.
Vehicles that do not meet minimum emission standards will be charged to enter the Ultra Low-Emission Zone (Ulez), 18 times more.
Although the Ulez is now in operation since April 2019, it was previously limited to the same area of central London that the Congestion Charge. It now covers all areas within the North Circular roads to improve air quality.
The Ultra Low Emission Zone in London is now 18 times larger as the expansion comes into force today meaning any drivers whose cars do not meet standards will face a £12.50 charge
Diesel cars must have been registered in the first place after September 2015. Petrol models that were registered before 2005 are exempt. This is another blow to drivers as petrol prices hit a new record high.
Mayor of London Mr Khan defended the move this morning, telling BBC Radio 4’s Today programme: ‘For me this is an issue of social justice.
Who do we think has the most severe health effects from toxic air? It’s the poorest Londoners who are least likely to own cars. Black, Asian, and minority-ethnic Londoners. Six out ten residents of the expanded area don’t own a vehicle.
‘And the area we’re going to be covering, the population of almost four million, is twice the size of Paris, eight times the size of Manchester – doing nothing is not an option.’
Felicity Kendal opens her car door. She is one of the 300,000 London residents whose homes are in the expanded low emission zone. Because her car is not environmentally friendly, she will be responsible for the Ulez car fee
Shaun Bailey, former Tory mayoral candidate was among those who criticised this move. He tweeted: ‘My mom, my son and i are all asthmatics, so we are with everyone who wants clean up our air. There are better ways to combat air pollution than the ULEZ. This will punish the most vulnerable …’.
Emilia Fox and Felicity Kendal were spotted driving out to enjoy the mild weather this weekend – but they are among 300,000 drivers whose homes fall within the expanded low emissions zone today, meaning they must pay the amount daily to use their environmentally unfriendly cars.
Emilia Fox was spotted out driving her diesel car this weekend ahead of London’s Ultra Low Emission zone coming into force
Transport for London originally expected that 138,000 drivers would pay the charge per day, but this has now been reduced to 111,000. If all of those motorists pay it would provide an income of £1.3million a day.
This comes after Sadiq Khan, London’s Mayor, was forced to delay the expansion because businesses still suffering from the pandemic said they couldn’t afford the higher cost.
Khan previously stated that it was a matter of life and death, despite being resisted by attempts to delay the change. He stated that the Ulez started at midnight last night and has already begun in Central London. Since its launch, we have seen a reduction of toxic air by nearly a quarter, a reductions in particulate matter and a reductions in carbon emissions.
“Just in our first full year with the expanded scheme we’ll reduce carbon emissions by more that 100 kilo tons. This is about 60,000 vehicles being removed from the roads. Mayors around the world are taking action now. We need to see those who travel to Glasgow to agree to further action.
Khan replied to a question about opposition to the scheme: “Of course there has been opposition, of course.” That’s one reason why, when I stood for reelection in May I had it on my ballot paper. I was explaining why doing nothing was not an alternative to doing so.
“This is a social justice issue for me. Who do we think is most affected by toxic air? It’s the poorest Londoners who are least likely to own cars. Black, Asian, and other minority Londoners are all excluded. Six out ten residents of the expanded area don’t own a vehicle. And the area we’re going to be covering, the population of almost four million, is twice the size of Paris, eight times the size of Manchester – doing nothing is not an option.’