Home Business NewsBusinessAutomotive News The ‘Chancellor must feel like King Canute’ as petrol and diesel price keep hitting record highs putting more pressure on motorists

The ‘Chancellor must feel like King Canute’ as petrol and diesel price keep hitting record highs putting more pressure on motorists

by LLB Finance Reporter
18th May 22 12:51 pm

Statistics from data firm Experian Catalist show the average cost of a litre of petrol at UK forecourts on Tuesday was 167.6p with diesel hitting a record high of 180.9p per litre.

The day before the Chancellor Rishi Sunak cut the fuel duty by 5p, the previous record hit 167.3p on 22 March.

AA fuel price spokesman Luke Bosdet said, “Despite his best efforts, the Chancellor must feel like King Canute having tried to reverse the tide of rising pump prices.

“At least though, he can say that UK drivers would be £2.75-a-tank even more worse off now had he not tried to take action in March.

“He hasn’t been helped by a fuel trade that, despite a 16p-a-litre fall in petrol costs that coincided with the spring statement, couldn’t even pass on the full 5p fuel duty cut and the 1p VAT reduction that it brought with it.”

The average profit margins for a litre of petrol and diesel are currently 11p ad 8p respectively, an RAC analysis showed.

RAC fuel spokesman Simon Williams said, “While the average price of both petrol and diesel would have been far higher without the historic duty cut, it’s also unfortunately the case that drivers haven’t seen the full benefit at the pumps due to major retailers upping their margins.”

He added that drivers are “feeling never-before-seen pain at the pumps”, which is “contributing to the worsening cost-of-living crisis”.

On the same day Sunak cut fuel duty by 5p, the Business Secretary Kwasi Kwarteng wrote to fuel retailers “to remind them of their responsibilities” amid claims they had hiked profits.

Kwarteng wrote, the British people were “rightly expressing concern about the pace of the increase in prices at the forecourt.”

He added, that they are “rightly frustrated that the Chancellor’s fuel duty cut does not appear to have been passed through to forecourt prices in any visible or meaningful way.

“It is also unacceptable that different locations even within the same retail chain have widely different prices.

“The Chancellor and I therefore want to re-emphasise and communicate again our expectation that members do everything possible to ensure that drivers are getting a fair deal across the country.”

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