UK gasoline prices hit record highs under pressure from oil market

UK gasoline prices hit record highs under pressure from oil market

UK oil prices have reached their highest level on record and could rise further in the coming weeks as the global energy crisis pushes oil markets to their highest level in three years.

Average daily price per liter hit 142.94p on Sunday, surpassing the all-time high of 142.48p reached on April 16, 2012, according to data from CAR / Experian.

The new price, which was predicted by analysts late last week, is 28 pence per liter higher than a year ago, when gasoline cost around 114.5 pence. This will add £ 15 to the cost of filling a family car with a 55-liter tank, to around £ 78.61 from £ 63 last October, increasing the financial pressure on households this winter.

Oil prices have risen steadily, alongside world market prices for oil, which have more than doubled from around $ 40 (£ 29) a barrel a year ago to around $ 85 in recent weeks due to ‘a sudden increase in post-pandemic energy demand.

The price of Brent crude hit $ 86.09 a barrel on Monday morning, the highest since it hit $ 86.43 in October 2018, which is expected to lead to further price hikes at the pump.

Simon Williams, spokesperson for RAC, said it was “a really dark day for drivers” which “would hurt many household budgets and undoubtedly have repercussions on the economy at large”.

The RAC has called on Chancellor Rishi Sunak, who will present the government’s fall budget this week, to temporarily cut VAT for larger retailers to bring the amount they earn on each liter of gasoline back to its level. before the pandemic.

“Even though many people don’t drive as much as they did in the past due to the pandemic, drivers tell us they are just as dependent on their cars, and many just don’t have to. no choice but to drive. Low-income people who have to drive to work will have a hard time finding the extra money for much-needed gas, ”said Williams.

“The big question now is: where will it stop and what price will gasoline reach? If the oil hits $ 100 a barrel, we could very easily see the average price go up to 150 pence a liter, ”he said.

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U.S. bank Goldman Sachs predicted last month that global oil prices could continue to climb to $ 90 a barrel by the end of the year, while rival Bank of America said a cold winter could drive the price of Brent to $ 100 a barrel in a few months. .

AA fuel prices spokesman Luke Bosdet said: “Whether it’s oil producers, market speculators, Treasury taxes or struggling retailers trying to balance their margins, record-breaking prices at the pump must tell drivers with the means that it’s time to make the switch to electric.

“As for the poorest motorists, many of whom now face daily costs for driving in cities, there is no escape. It’s a return to cutting other consumer spending, maybe even heating or food, to keep the car that puts them to work on the road.


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