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Petrol prices back above £1.65 for first time since fuel duty cut

Petrol is again above £1.65 a litre for the primary time since Rishi Sunak minimize gas responsibility by 5p – because the AA warns drivers ought to brace for ‘a lot greater’ rises

  • Common UK petrol value rose to 165.05p on Wednesday – the primary time above £1.65 because the Chancellor introduced the gas responsibility minimize on 23 March
  • Diesel can also be as much as 179.55p a litre this week – that simply 0.35p off the UK document
  • AA says costs drivers can count on to see forecourt costs rise in coming weeks
  • Elevated US summer time demand historically inflates value of oil this time of 12 months

The price of filling up will hit document highs in coming weeks, warned the AA, after it confirmed common petrol costs had risen above £1.65 a litre – for the primary time because the Chancellor’s gas responsibility minimize in March.

Official information reveals the typical unleaded value is now as much as 165.05p, whereas diesel has edged inside half a penny of the UK document excessive, after reaching 179.55p this week.

The motoring group says drivers ought to brace for pump costs to rise ‘a lot greater’ and ‘put together their funds for additional substantial will increase’.

Petrol is back above £1.65 a litre for the first time since Chancellor's fuel duty cut and diesel is within half a penny of new record high: AA warns drivers should brace for 'much higher' rises  in coming weeks

Petrol is again above £1.65 a litre for the primary time since Chancellor’s gas responsibility minimize and diesel is inside half a penny of latest document excessive: AA warns drivers ought to brace for ‘a lot greater’ rises  in coming weeks

Wednesday was the primary time the UK common value of petrol exceeded £1.65 since 23 March, the day of Rishi Sunak’s spring assertion the place he introduced measures to ease the burden of the price of dwelling disaster on Britons. 

The day earlier than the Chancellor introduced he was instantly reducing the quantity of tax paid on every litre of gas by 5p, unleaded was at a document excessive of 167.30p.

On 23 March, it dipped under £1.65 and till yesterday hadn’t gone above that value.

With drivers of autos powered by diesel engines already paying near document pump costs, the distinction in the price of filling up in comparison with final 12 months is stark.

Forecourts had been charging a mean of 127.97p for petrol and 130.30p for diesel on 12 months in the past – 37.08p and 49.25p per litre lower than at the moment respectively.

Which means filling the everyday 55-litre petrol tank is now £90.78, in comparison with £70.38 a 12 months in the past, says the AA, an increase of 29 per cent.

For somebody utilizing a Transit-type van, the price of refuelling an 80-litre tank is nearly £40 costlier, rising from £104.24 in Might 2021 to £143.64 this week.

The UK average price of petrol has remained below £1.65 a litre since the Chancellor announced the 5p cut to fuel duty on 23 March

The UK common value of petrol has remained under £1.65 a litre because the Chancellor introduced the 5p minimize to gas responsibility on 23 March

And the motoring group says worse seems set to come back for the nation’s drivers within the coming weeks, regardless of the very fact their vehicles can be extra economical within the subsequent few months than what they’re within the winter.

‘Petrol costs look to rise a lot greater within the coming weeks and individuals who depend on their vehicles for important every day journeys, reminiscent of driving to work, want to organize their funds for additional substantial will increase,’ defined Luke Bosdet, the AA’s gas value spokesman.

‘The summer time climate and extra driving in daylight will take a few of the sting out of the pump value rises. 

‘Motor autos must be getting higher gas consumption in comparison with March.’

The AA stated pump costs had been all the time set to spiral once more, as rising summer time demand within the US typically inflates the worth of oil right now of the 12 months. 

‘Speedy value will increase on the forecourt boards can be what catches drivers’ consideration,’ Bosdet added.

‘In a single respect, the worth will increase had been predictable provided that the summer time motoring season all the time results in greater petrol prices – US demand all the time shoots up and will increase commodity values. 

‘Nevertheless, the rising value of oil and weaker pound have contributed additionally.’

What’s gas responsibility?

When the Chancellor introduced a 5p-a-litre minimize to gas responsibility, it offered an opportune time to provide you a refresher course on what it really is.

Rishi Sunak confirmed in his Spring Assertion that he has trimmed the levy on each litre of gas from 57.95p-a-litre to 52.95p as a part of efforts to ease the burden of document petrol and diesel costs on motorists.

It is just the second minimize to gas responsibility in 20 years (the primary was in March 2011) and the decrease fee of responsibility can be saved in place till March 2023. The RAC calculates that it’ll scale back the price of filling a typical 55-litre household petrol automobile by round £3.

Right here we clarify how a lot gas responsibility contributes in the direction of the entire value of petrol and diesel, when it was first launched, how costly it’s compared to taxation in different international locations and what the long run is for the levy when vehicles change to electrical energy… 

> Learn our gas responsibility explainer right here 



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