Diesel close to £2 per litre as pump prices continue to increase

Diesel and petrol pump prices reached record highs over the weekend, with diesel now nearing an average of £2 per litre.

Petrol hit another new high yesterday (Sunday, June 19) of 188.7p per litre (ppl), on average, while diesel reached 196.1ppl on Saturday (June 18).

RAC fuel spokesman Simon Williams said: “More than five weeks of successive record prices has caused a litre of unleaded to rocket 23p from 165.5p in mid-May.

“A full tank of petrol for a 55-litre family car now costs nearly £104 (£103.79) while the diesel equivalent is almost £108 (£107.83).

“This is yet more bad news for drivers, particularly with this week’s rail strikes leaving many people with no choice but to use their cars.

“But looking at the wholesale cost of petrol, which has settled due the oil price falling, petrol pump prices really should not continue to rise, if anything they ought to begin reducing.

“Sadly though, diesel looks destined to head rapidly towards an average of £2 a litre which would make a full tank £110.”

Williams hopes that the extent of rises will finally force the Government to take action to ease the burden on drivers by further cutting duty or lessening the punishing impact of VAT, which currently accounts for 31p a litre on petrol – 6p more than it was before the Ukraine war began.

The latest price hikes comes as research from Nucleus Commercial Finance shows how rising prices are affecting companies as well as consumers, with concerns surrounding fuel costs and energy bills worrying UK business leaders the most 

Almost a quarter of UK business leaders (23%) fear their company will not survive the financial year due to the current cost of living crisis, the new research has revealed. 

Around one in ten (9%) said that if the situation doesn’t change, they’d expect to go out of business in the next five years.  

The figures come from a new survey by Nucleus Commercial Finance, which investigated how soaring prices are affecting businesses across the country. 

Across the board, almost three quarters (72%) of owners said the current cost of living crisis is a cause for concern for the survival or growth of their business.  

With prices hitting record highs recently, the high cost of fuel is at the top of the list of the most worrying outcomes of the current crisis for business leaders. 

The rising cost of energy is also a major cause for concern. According to a previous report, small and medium-sized businesses (SMEs) have faced an average gas bill hike of more than 250% in the last year.  

Additionally, unlike domestic customers, businesses aren’t covered by the energy price cap which could mean even higher running costs in an already volatile market. 

Cash flow, employee retention and higher transportation costs are also amongst UK’s business leaders’ biggest worries at this time. 

The majority of business leaders are also concerned the current crisis will not just affect their business directly, with higher supply costs and bills, but indirectly too.  

Chirag Shah, founder and CEO at Nucleus Commercial Finance, said: “With costs sharply rising for both businesses and consumers, it’s no surprise that leaders across the country are worried about the survival and growth of their company. 

“Our research has shown the price of fuel, transportation and energy, as well as cash flow and employee retention seem to be the most concerning aspects for UK businesses right now.”  

Fleet News has teamed up with Allstar to bring you the fuel prices locator, enabling you to compare fuel prices and find the cheapest petrol or diesel in your area.

Even one penny per litre can make all the difference when filling up your fleet vehicles, potentially saving your company thousands of pounds a year.

Average pence per litre and per gallon petrol and diesel fuel prices in the UK regions includes England, Scotland, Wales and Northern Ireland. To access the latest fuel prices, click here.