Fuel prices hit new record as wholesale costs fall

Fuel prices have continued to increase in the last week, with petrol now costing 187.51p per litre and diesel soaring to 194.17p per litre.

The rises come despite a drop in wholesale fuel prices this week.

The average price of petrol increased by 7p per litre (ppl) in the previous week, with diesel increasing by 4.5ppl.

Filling the typical 55-litre car tank has leapt from £71.92 to £103.13, in the past year, while the average diesel van now costs more than £150 to fill.

The AA said yesterday’s wholesale prices were nearly 9p below the peak just before the Jubilee bank holiday and drivers should be seeing a drop in pump prices.

It branded he fuel trade’s failure to cut prices as ‘shameful’.

Both the RAC and the AA called for urgent action from the Chancellor to cut duty or VAT on fuel. 

The AA has called on the Government to cut fuel duty by 10ppl immediately and introduce a fuel price stabiliser.

A stabiliser would work, it says, by reducing fuel duty when prices go up and increasing it when prices drop, giving more certainty to drivers and businesses. 

Alongside this, the AA wants the Government to introduce a national fuel price checker to stop the post-code lottery when it comes to fuel prices.

Such a system works well in Northern Ireland, according to the AA, where on average both petrol and diesel 6p per litre cheaper than in the rest of the UK.