Average petrol prices hit record high of 173.02p a litre after EU ban on Russian oil: Motorists will have fork out more than £95 to fill family car – as experts warn cost could hit 180p in ‘a matter of days’
- Average price of litre of petrol hits new record high of 173.02p on Tuesday
- That brought the cost of a full tank for a 55-litre unleaded car to nearly £100
- News brings fresh misery for Britain’s 33m motorists ahead of Platinum Jubilee
- EU agreed a 70 per cent ban on Russian oil after promising a complete embargo
Petrol prices have surged to yet another record high as drivers brace for more misery at the pumps after the European Union reneged on plans to completely ban Russian oil imports.
New figures from Experian Catalist revealed the average price of a litre of the fuel at UK forecourts was a record 173p on Tuesday.
That brings the cost of filling up a typical 55-litre family car with unleaded now stands at £95.16, according to the RAC. Industry insiders say £45 of that cost is currently tax.
They also warned that ‘worse is sadly yet to come’, with expectations of petrol hitting 180p per litre in the coming days as crude oil prices continuing to skyrocket.
The news marks the latest hammer blow for Britain’s 33million motorists, many of whom will be tightening the purse strings amid an existing cost of living crisis.
It could also spell fresh pain at the pumps for drivers planning on getaways during the Platinum Jubilee Bank Holiday and over the half-term break.
Brussels’ bureaucrats agreed a watered-down ban on Russian fuel imports brought in by sea on Monday.
A partial oil embargo marks a significant climbdown for the EU since Commission President Ursula von der Leyen proposed a complete ban four weeks ago.
Petrol prices have surged to yet another record high as drivers brace for fresh misery at the pumps after the European Union voted to ban Russian oil imports. Pictured: Prices at a Shell petrol station in Belgravia, London on Friday May 27
The news could also spell fresh pain at the pumps for drivers planning on getaways during the Platinum Jubilee Bank Holiday and over the half-term break. Pictured: Slow moving traffic on the M3 near Winchester, Hampshire in April
EU leaders were only able to agree a 70 per cent ban on Russian oil after deliberations on Monday evening – having previously promised a complete embargo
Ursula von der Leyen had spoken of a complete ban on Russian oil just four weeks ago, but was forced into a climbdown due to opposition from Hungary
RAC fuel spokesman Simon Williams said: ‘The EU’s decision to ban the majority of Russian oil imports will cause the barrel price to go higher still, spelling yet more misery for fuel prices in the UK.
‘The wholesale price of petrol has already been increasing due to the increased summer driving demand which means we are likely to see average forecourt prices for petrol climb to 180p a litre in a matter of days.
‘Sadly, far worse will follow as the current oil price of $122 will likely lead to an average price of a litre of unleaded hitting 185p.’
EU council president Charles Michel announced the 27-nation bloc had agreed a ban covering more than two-thirds of Russian oil imports on Monday evening.
There are ambitions to ban 90 per cent of Russian fuel entering the bloc by 2023, officials say – having previously promised a complete embargo on their fuel.
The watered-down embargo covers only Russian oil brought in by sea, allowing a temporary exemption for imports delivered by pipeline.
Ukrainian president Volodymr Zelensky criticised the bloc’s bickering stance as it was revealed the EU will continue to pay Putin tens of billions of euros per year for gas – a key source of income for Russia – after it was exempted from sanctions earlier this year.
The partial oil embargo marks a significant climbdown for the EU since Commission President Ursula von der Leyen proposed a complete ban four weeks ago.
Boris Johnson has ordered ministers to find ways to ‘expose’ petrol stations that fail to pass on lower prices from the Government’s fuel duty cut.
The PM is pushing for action after figures last week showed average petrol prices exceeded £1.70 per litre for the first time – despite the Chancellor introducing a 5p per litre duty cut on March 23.
But two months later and Britain’s motorists are yet to see any benefit at the pumps with forecourts continuing to advertise petrol and diesel at record prices.
Department for Transport officials have been tasked with drawing up plans to ‘name and shame’ garages that choose to raise profit margins rather than pass on the cut to customers.
According to Sunday Telegraph, Transport Secretary Grant Shapps has suggested a ‘pump watch’ name-and-shame scheme.
A Downing Street source said: ‘Officials are considering mechanisms available to expose those companies that aren’t passing on tax benefits to consumers.’
Viktor Orban, Hungary’s hardline leader who shares good ties with Moscow, had been bitterly opposed – saying cutting his country off from Russian oil would be like dropping a ‘nuclear bomb’ on its economy.
In the event, leaders agreed to a ban on Russian oil being brought in by sea – which Council President Charles Michel said on Monday would mean cutting off 70 per cent of supplies.
Taken together with unilateral action from Germany and Poland to shut off pipeline oil, it will mean an effective ban of 90 per cent by the end of the year, he added.
The ban will deprive Russia’s economy of hundreds of billions of dollars in trade, along with billions more in coal exports which have already been banned.
It forms part of a sixth package of sanction on Russia which will be published later this week, including cutting off another of its banks from the Swift payment system, as well as restrictions on more state media and asset freezes for individuals.
The latest development could signal the return of the derisory situation millions of motorists faced in March, when fuel prices were hitting new records daily.
Soaring fuel prices are a blow to families embarking on half-term trips and people planning to travel over the four-day Platinum Jubilee bank holiday period, which begins on Thursday.
Diesel prices were also at record levels on Monday, after the average price hit 182.7p per litre over the weekend.
Steve Gooding, director of the RAC Foundation, said: ‘Millions of drivers will now be faced with a bill of £100 or more to fill up their cars.
‘While many drivers will sensibly be seeking to maximise their miles per gallon by going easy on the throttle, the risk now is that some might misjudge the difference between running low and running out in the hope that tomorrow’s prices will be lower.
‘But we wouldn’t bet against the pain increasing further, with oil pushing up above the 120 US dollars a barrel mark and the wholesale price of petrol still rising.’
Pump prices only started falling after Chancellor Rishi Sunak (pictured in March) slashed fuel duty on petrol and diesel by 5p a litre in his March mini-budget
British drivers are paying more in fuel tax than they did 12 months ago – even after Rishi Sunak’s 5p per litre cut
Figures show how hard-pressed motorists in the UK are forking out more in taxes per tank of petrol than most EU countries, including Ireland, Italy and Spain, as ministers face renewed calls to slash VAT on fuel
It comes as MailOnline revealed British drivers are paying more in fuel tax than they did 12 months ago – even after Rishi Sunak’s 5p per litre cut, a new analysis of pump prices has revealed.
Figures show how hard-pressed motorists in the UK are forking out more in taxes per tank of petrol than most EU countries, including Ireland, Italy and Spain.
And diesel drivers are paying more in taxes per tank than any EU country.
Meanwhile, a new poll has found more than half of Britons blame the Government for rising petrol prices, as ministers face renewed calls to slash VAT on fuel.
Based on official figures from the Department for Business, Energy and Industrial Strategy (BEIS), the analysis revealed Britons are currently paying £44 in taxes on petrol each time they fill up a typical car with a 55-litre tank.
This is 55p more than they were paying in April last year, despite the Chancellor having cut fuel duty by 5p per litre on 23rd March this year.
The analysis of BEIS figures, conducted by the Liberal Democrats, also showed diesel drivers are paying £45 in taxes per tank each time they fill up.
Ministers are under pressure to ensure petrol stations are passing on Mr Sunak’s 5p per litre cut in fuel duty to motorists.
It has been claimed firms are ‘profiteering’ from the reduced levy by failing to pass on the full cut at the pumps.
The developments come as it was widely reported Prime Minister Boris Johnson is ready to name and shame those firms that are refusing to drop their prices at the forecourts for Britain’s beleaguered drivers.
The PM is pushing for action after figures last week showed average petrol prices exceeded £1.70 per litre for the first time – despite the Chancellor introducing a 5p per litre duty cut on March 23.
Department for Transport officials have been tasked with drawing up plans to ‘name and shame’ garages that choose to raise profit margins rather than pass on the cut to customers.
According to Sunday Telegraph, Transport Secretary Grant Shapps has suggested a ‘pump watch’ name-and-shame scheme.
A Downing Street source said: ‘Officials are considering mechanisms available to expose those companies that aren’t passing on tax benefits to consumers.’
A spokesperson for the Prime Minister today said the Government was ‘exploring our options’ with regards to further action, after Business Secretary Kwasi Kwarteng wrote to petrol firms earlier this month to warn they could face legal action.
In a letter to industry leaders, the Cabinet minister informed them he had asked the competition watchdog to ‘closely monitor’ fuel prices.
And Mr Kwarteng said he had been ‘reassured’ the Competition and Markets Authority would ‘not hesitate to use their powers’ if they found law breaches.
EXCLUSIVE: Britain’s drivers are still paying MORE fuel duty on a tank – even after Rishi’s 5p cut – than last year
By Greg Heffer for MailOnline
British drivers are paying more in fuel tax than they did 12 months ago – even after Rishi Sunak’s 5p per litre cut, a new analysis of pump prices has revealed.
Figures show how hard-pressed motorists in the UK are forking out more in taxes per tank of petrol than most EU countries, including Ireland, Italy and Spain.
And diesel drivers are paying more in taxes per tank than any EU country.
Meanwhile, a new poll has found more than half of Britons blame the Government for rising petrol prices, as ministers face renewed calls to slash VAT on fuel.
It comes as petrol and diesel prices hit fresh highs on Saturday and Sunday, with drivers warned ‘worse is sadly yet to come’ ahead of the Jubilee bank holiday weekend.
Based on official figures from the Department for Business, Energy and Industrial Strategy (BEIS), the analysis revealed Britons are currently paying £44 in taxes on petrol each time they fill up a typical car with a 55-litre tank.
This is 55p more than they were paying in April last year, despite the Chancellor having cut fuel duty by 5p per litre on 23rd March this year.
The analysis of BEIS figures, conducted by the Liberal Democrats, also showed diesel drivers are paying £45 in taxes per tank each time they fill up.
The Chancellor cut fuel duty by 5p per litre on 23rd March, but he is now facing demands for further action to help hard-pressed motorists
As of last month, it was found Britons were paying almost 80p per litre in taxes on unleaded petrol and more than 82p per litre on diesel.
Separate figures, from data firm Experian Catalist, showed the average price of a litre of diesel at UK forecourts was a record 182.7p on Saturday and 182.6p on Sunday.
That brought the cost of a full tank for a 55-litre diesel car to nearly £100.50.
Petrol prices are also at record levels, with the average price at 172.1p per litre on Saturday and rising to a new high of 172.7p on Sunday.
A Savanta ComRes poll, commissioned by the Lib Dems, revealed 52 per cent of Britons blame the Government for rising petrol prices.
Little more than one-third (35 per cent) said the Goverment was not to blame, according to the survey of more than 2,600 adults.
It also found one in three (33%) of Tory voters blamed the Government for high petrol prices, while two in three (67%) Labour voters and more than one in two (55%) Liberal Democrats agreed ministers were to blame.
The Lib Dems are calling for an emergency cut to VAT to 17.5 per cent, which the party claims would save families an average of £600 a year by slashing prices in the shops and at the pumps.
VAT is applied after fuel duty, so, for example, the pump price of a litre of petrol currently reflects the pre-tax price plus 52.95p for fuel duty plus 20 per cent VAT on the pre-tax price and a further 10.59p for VAT at 20 per cent on fuel duty.
Lib Dem leader Sir Ed Davey said: ‘Hard-pressed families and pensioners are facing a summer of agony at the petrol pump.
‘Meanwhile Rishi Sunak is cashing in as drivers fork out over £40 a tank in taxes.
‘It is rural communities I fear for most with fuel prices at record highs.
‘Those commuting longer distances to work are seeing more of their income go on fuel just as the cost of living crisis worsens.
‘Conservative ministers have been in complete shambles on this.
‘This Government is arrogantly refusing to cut VAT, just like they refused for months to put a windfall tax on oil companies. This tax cut must be their next U-turn.’
Lib Dem leader Sir Ed Davey is calling for an emergency cut to VAT to 17.5 per cent, which the party claims would save families an average of £600 a year
Responding to the fresh highs in fuel prices this weekend, RAC spokesperson Simon Williams warned the situation would worsen for motorists ahead of the four-day Jubilee bank holiday weekend.
He said: ‘With crude oil prices consistently above 115 US dollars a barrel last week, worse is sadly yet to come just in time for the Jubilee bank holiday, particularly as petrol is now more expensive than diesel on the wholesale market.
‘Due to the rapid rise in the cost of wholesale unleaded, retailers are now taking smaller margins on petrol but larger ones on diesel.
‘If the wholesale price of petrol stays above diesel, we ought to see the current 10p-a-litre gap in average petrol and diesel forecourt prices narrow.
‘If this doesn’t happen diesel drivers will be getting a raw deal, and with prices at these historic highs, every penny matters to drivers.’
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