Yahoo Finance Diesel prices hit new high despite Sunak fuel duty cut
The price of diesel has soared to a fresh record high, adding further financial pressure on UK households and businesses, despite chancellor Rishi Sunak's cut to fuel duty.
Average pump prices for diesel hit 180.29p a litre on Sunday, according to the latest data from the AA, beating the previous high of 179.90p on the day of the Spring Statement on 23 March.
Petrol prices reached 166.65p, less than a penny short of its all-time high.
AA fuel spokesman Luke Bosdet warned that increased prices would have a knock on effect for other goods as hauliers passed on the extra costs.
“Record pump prices not only hit families at the pump but also when they shop, get a delivery or call out a repair person,” he said.
Read more: Spring Statement: Rishi Sunak cuts income tax and fuel duty
Last month the chancellor announced a temporary 5p a litre cut to fuel duty as motorists continue to struggle with prices. He is now facing mounting pressure to act more widely in support of both consumers and businesses amid the sharp cost of living crisis.
Simon Williams, fuel spokesperson for the RAC said: "Efforts to move away from importing Russian diesel have led to a tightening of supply and pushed up the price retailers pay for diesel.
"While the wholesale price has eased in the last few days this is likely to be temporary, especially if the EU agrees to ban imports of Russian oil.
“Unfortunately, drivers with diesel vehicles need to brace themselves for yet more pain at the pumps.”
He added: “Had Sunak reduced VAT to 15% as we call on him to do instead of cutting duty by 5p, drivers of diesel vehicles would be around 2p a litre better off, or £1 for every full tank.
"As it is, drivers are still paying 27p VAT on petrol and 29p on diesel, which is just the same as before the spring statement."
Read more: IFS calls Sunak 'fiscal illusionist' after warning measures are not enough
It came as research by the AA showed Brits were opting to fly abroad this summer, go on a non-driving holiday or even stay at home due to surging prices at the pumps.
“More than a third of drivers will mainly drive during their summer holidays. However, it was expected that the cost of living crisis would lead to more doing so and vacationing in the UK, instead of jetting off somewhere,” Edmund King, AA president, said.
“Instead, the huge volatility of pump prices has pointed many people to holiday packages with controllable set prices. Flying abroad therefore becomes more attractive.
“That’s not good news for a UK tourism industry already facing millions of pounds of potential visitor spending being syphoned off at the forecourts. Added to that, visitor numbers could be thinned by those staying at home — although day trips may be the big thing this summer.”
