Yahoo Finance UK petrol prices to soar above £1.60, diesel £1.70, says RAC
Petrol prices are certain to top £1.60 a litre this week in the UK and diesel £1.70 soon after as new sanctions on Russian oil and gas imports squeeze the cost of living.
On Tuesday, the average cost of petrol in the UK had increased to 158.20p, with diesel prices also rising to 165.24p, according to figures from RAC.
RAC fuel spokesman Simon Williams said: “Wholesale fuel prices have already risen dramatically this week, so more pump price increases in the coming days are inevitable.
"Petrol is now certain to top an average of £1.60 a litre this week while diesel will progress very quickly towards £1.70."
Read more: UK set to ban Russian oil imports
The cost of a filling a 55-litre family car with petrol is now £87 – £7 more than it was at the start of the year.
Diesel drivers are even worse off with a tank now costing more than £90 for the first time ever – £8 more than in early January, RAC said.
Business Secretary Kwasi Kwarteng announced on Tuesday the UK will phase out the import of Russian oil and oil products by the end of the year.
The UK gets 8% of its oil from Russia and the main impact is likely to be felt by buyers of diesel, where Russia meets 18% of the country's needs.
RAC has urged chancellor Rishi Sunak to cut VAT on fuel as drivers continue to be hit by record pump prices.
Williams said: “We continue to call on the chancellor to help drivers by temporarily cutting VAT to at least 15%. As it stands 26p a litre of what drivers are paying on the forecourt is attributable to VAT and that comes on top of 58p a litre in fuel duty.
"This tax on a tax is causing unbelievable financial pain to drivers which is why we believe Mr Sunak holds the key to easing the burden.”
Moscow is the second largest producer of crude oil in the world, and it provides a third of Europe’s total oil supplies.
Read more: Shell pledges to stop buying Russian oil and gas
Following Russia’s invasion of Ukraine, gas prices soared to a record £7 per therm earlier this week, almost twenty times more than this time last year.
Ofgem chief executive officer Jonathan Brearley has warned a further painful hike in household energy bills is “almost inevitable” and that the “gas crisis is not over.”
Speaking at the Future of Utilities Smart Energy conference, Brearley said: "while it is too early to predict what the price cap will be in October, a price increase is almost inevitable.”
The energy regulator has also raised the consumer price cap by 54% to nearly £2,000 in April.
Watch: Why are gas prices rising?
