Yahoo Finance UK petrol prices surge to fresh record high
Petrol prices in the UK climbed to a fresh record high on Monday, adding to the cost of living squeeze facing consumers and inflationary pressures.
Over the weekend, the cost of petrol rose to 148.02p a litre for the first time ever, while diesel reached a new high of 151.57p last Thursday. This follows the previous records of 147.72p and 151.10p respectively, in late November.
The RAC said the price of filling a 55-litre family car was now an "eye-watering" £81.41.
“The cost of living crisis has been ratcheted up yet another notch, tightening the vice on family spending when it faces other pressures from impending domestic energy cost and tax increases,” Luke Bosdet, fuel price spokesman for the AA said.
“Prices have soared on the back of wholesale fuel prices, which have jumped amid a resurgence in demand following the reopening of global economies, but have also been spurred in recent days by concerns that Russian tensions could have an impact on supply.”
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It comes as Brent crude (BZ=F) hit $96 a barrel for the first time since September 2014 amid fears that supplies could be disrupted by potential sanctions should Russia invade Ukraine.
Over the weekend, tensions between the two countries mounted further. The US warned Russia could launch an invasion of Ukraine within days, while UK prime minister Boris Johnson is set to travel to countries in Europe this week in a bid to unite Western allies.
This week marks the ninth consecutive week of gains for oil prices, with analysts betting prices will reach $100 a barrel by the end of the week.
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RAC fuel spokesman Simon Williams said: “With the oil price teetering on the brink of $100 a barrel and retailers keen to pass on the increase in wholesale fuel quickly, new records could now be set on a daily basis in the coming weeks.
“The oil price is rising due to tensions between Russia — the world’s third biggest oil producer — and Ukraine, along with oil production remaining out of kilter with demand as the world emerges from the pandemic. As a result drivers in the UK could be in for an even worse ride as pump prices look certain to go up even more.
"On a positive note, retailer margins — which were the reason drivers paid overly high prices in December and January — have now returned to more normal levels of around 7p a litre.
The RAC is urging the big four supermarkets, "which dominate fuel sales, to play fair with drivers and not to make a bad situation on the forecourt any worse by upping their margins again”.
UK inflation currently stands at a 30-year high of 5.4%. New inflation figures for January will be released by the Office for National Statistics (ONS) on Wednesday.