Price of Petrol in UK Makes Biggest Jump in 17 Years

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The price of petrol in the UK has made its biggest single-day jump in 17 years, and the cost of filling a regular family car is now on the verge of crossing £100 ($124.58) for the first time. 

On June 7, the cost for a liter of petrol came up to an average of 190.73p, up a staggering 2.23p from the previous day. Some gas stations, including a BP garage on the A1 close to Sunderland, are already selling petrol for over £2 ($2.49) a liter. 

Diesel prices soar as well

Diesel prices in the UK are also at a record high, having hit 186.6p on June 7. It was up 1.4p from the previous day. The rising price of diesel significantly impacts the larger economy, given that businesses typically use the fuel to fill larger vehicles like trucks and vans. 

Soaring fuel prices have been blamed on rising demand for petrol and diesel across the world, including in China and the United States, as COVID-19 restrictions loosen. That said, oil has fallen from its peak, which was seen at the beginning of the Russia-Ukraine war. 

Fuel prices cause a row between RAC and AA

The RAC (Royal Automobile Club) recently urged the government to intervene in order to cushion the cost of fuel at gas stations. However, the AA (Automobile Association) was quick to take a hit at the RAC for its comments, blaming “reckless speculation” for increasing fuel prices in the country. The spat between the two key motoring bodies in the UK came as a surprise to everyone. 

AA’s Luke Bosdet said, “Reckless speculation is leading to rip-off prices at the pump. Yesterday’s more than 2p-a-liter leap in average UK petrol prices is a huge shock and fuels concern that speculation of a £2 liter just gives the fuel trade license to pile on extra cost and the misery.” 

An RAC spokesman rebutted the claim and argued that retailers were determining prices based on wholesale costs as opposed to speculation. 

Retailers accused of not passing fuel duty cut to consumers

In March, chancellor Rishi Sunak reduced fuel duty marginally. However, fuel retailers are being accused of not passing this cut to consumers. Business Secretary Kwasi Kwarteng wrote to fuel retailers to say it was “unacceptable that different locations even within the same retail chain have widely different prices.”

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