‘CRIPPLING’ FUEL PRICES: Fuel prices could hit £1.50 per litre BEFORE end of year

Fuel prices could hit £1.50 per litre BEFORE the end of the year, further ‘crippling’ low-income families and business says UK fuel campaigner.

Howard Cox, Founder of FairFuel UK, has called on the Government ‘to give all drivers a break and help the economy thrive’ by cutting Fuel Duty.

The calls come as RAC Fuel Watch data shows the average price of diesel across the UK hit a ‘scary’ new record high of 147.94p a litre on Sunday 31 October, just surpassing the previous high of 147.93p set on 12 April 2012.

The record comes just a week after petrol also went above the record price of April 2012 at 142.48p. Since then it has gone higher still, peaking at 144.35p on Sunday 31 October.

Howard Cox Founder of FairFuelUK says: "We predicted a month ago that pump prices would hit £1.50 per litre before the end of 2021. Now its likely to happen as early as December. The impact on low-income families, small businesses, hauliers and the supply chain is crippling and getting worse.

"The Budget was an opportunity missed by Rishi Sunak to help UK’s 37million drivers. With pump prices breaking new highs every day, it means the Treasury is benefiting in billions of unexpected VAT pump receipts which are growing by the hour. This huge excise windfall to the Exchequer should now be passed on to consumers, by lowering Fuel Duty. Don’t forget, VAT is also charged on the Duty itself. A deceitful double taxation that sticks in the motorist’s craw. We are out of the EU, so let's take back control of our taxes and stop taxing a tax.

"And to all those pathological enemies of the internal combustion engine, UK drivers still remain one of the top 3 nations' highest taxed motorists in the world. They contribute the 4th to 5th largest income to the Treasury with all the motoring taxes they unfailing contribute, and at the same time are subsidising the tax-free travel of EV drivers."

RAC fuel spokesman Simon Williams said: “While this isn’t unexpected as petrol has already hit a new record price, it’s still another body blow to drivers and businesses across the country who were already struggling to cope with rising prices.

“As well as hitting household budgets this will have a knock-on effect on the price we pay for goods and services as diesel is very much the fuel of business and, as such, will contribute further to inflation.

“While the price of diesel on the forecourt has primarily shot up due the cost of a barrel of oil doubling in the last year from around $40 to more than $80, the price of biodiesel is now two and a half times what it was 12 months ago. This means the biodiesel content in a litre has rocketed from 7p to 16p, while the pure diesel component has doubled from 20p to 40p.

“Unlike petrol where retailers have increased their margin on every litre sold compared to 2012, the profit being taken on diesel is the same as it was nine and a half years ago, so we’re pleased to report this isn’t adversely contributing to the record price at the pumps.”

Cox added: "Petrol and diesel drivers also face an uncontrolled pump pricing lottery, enforced local authority congestion, and punitive needless clean air charges. All coupled with being demonised for all the environmental ills of the planet.

"The perpetual commercial fleecing of 37million UK drivers goes unchecked by a Government afraid to implement PumpWatch and take on the oil companies opportunistic pump pricing process head on. The reason is clear they don't wish to forego the extra VAT generated from sky high pump prices. Sickening and happening right now!

"Simple economics, popular and proven to work, it's time to give all drivers a break and help the economy thrive too. Chancellor, have the mettle to cut Fuel Duty by 3p.”