Petrol prices: Cost of heading to the pump exceeds £100 – why has petrol gone up again?

The cost of filling up an average family car has now exceeded £100 for the first time, with research from RAC showing motorists must now shell out £100.27 to fill up a 55 litre tank with petrol and £103.43 for diesel. Prices have been on the up for a while now but have kept rising after it was revealed petrol stations had swelled costs by the biggest daily margin for 17 years on Tuesday.

After prices went above the £100 mark on Thursday, the RAC Fuel Watch group labelled it as “a truly dark day”.

Simon Williams, a spokesman for the firm, said: “While fuel prices have been setting new records on a daily basis, households up and down the country may never have expected to see the cost of filling an average-sized family car reach three figures.

“March’s 5p fuel duty cut now looks paltry as wholesale petrol costs have already increased by five-times that amount since March.”

Soaring energy bills and inflation are creating additional misery for Britons already feeling the pinch from the cost of living crisis.

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Why have petrol prices gone up again?

The cost of petrol has already been rising for some time, following increased demand at the start of 2022.

Most countries have now removed their Covid restrictions, which has allowed businesses to return to normal operating procedures, and employees to the office.

Prices have also been pushed higher as a result of Russia’s invasion of Ukraine.

Moscow is one of the largest oil exporters in the world and it is being targeted by economic and trading sanctions.

These have helped to create potential supply concerns, pushing up oil prices.

Crude oil prices and the dollar exchange rate play a significant role in determining prices at the pump, as crude oil is traded in dollars.

By the end of 2022 European Union (EU) leaders have committed to ending most Russian oil imports.

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While the UK has also pledged to block all of the oil it receives from Russia by the end of the year – Moscow currently supplies eight percent of its needs.

Developments, including these, have pushed prices further as more and more countries seek alternative providers.

But the Government is concerned that one of the reasons petrol prices have jumped so quickly is because some retailers are not passing on the recent cut in fuel duty to consumers.

On Wednesday Prime Minister Boris Johnson’s official spokesman said the Government was “not confident” this was happening at all petrol stations.

He said the Government was “continuing to look at all possible options” and “transparency may have an important role to play” in ensuring the cut is passed on.

Chancellor Rishi Sunak announced in March that he would be cutting the fuel duty tax by 5p a litre.

However, the cost cutting measure has had no effect on the prices which millions of Britons could now struggle to pay.

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