Average cost of filling family car with petrol set to hit £100
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Increasing petrol prices are making life harder for British drivers who are having to fork out more to fill up their cars. World events, the oil market and the pandemic are all having an impact on the price of petrol.
Why is petrol so expensive?
The average cost of a litre of petrol is now 185.04 and 190.92 for diesel according to the RAC Foundation.
Petrol and diesel are made from crude oil which has soared in price over the past months.
The extra cost is passed on to consumers as the demand for fuel increases as countries reopened after the pandemic.
Prices were lower at the start of the pandemic in 2020 when the demand for fuel collapsed with lockdown.
In May 2020 petrol could be bought for 106.69 pence per litre and diesel for 111.86.
The current state of the economy is also pushing up the price of fuel for drivers as most petrol is bought in dollars.
The pound is weak against the dollar right now with £1 buying just $1.22 making fuel even more pricey.
Has the war in Ukraine increased petrol prices?
Russia is one of the world’s largest oil exporters and is under heavy sanctions from western countries right now after it invaded Ukraine in February.
Russia supplies about 27 percent of the EU’s oil imports but the bloc announced it would stop most of this by the end of 2022.
The UK is phasing out Russian oil by the end of the year and the US announced a complete ban on Russian oil.
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Western countries are now looking elsewhere to buy oil and this is pushing prices higher.
Of the UK’s oil imports only eight percent comes from Russia but oil prices around the world impact British drivers.
Other countries which are large oil exporters include Saudi Arabia, Iraq and the United States.
US President Joe Biden is encouraging US oil companies to rapidly increase their production to help tackle rising prices.
When will petrol prices go down?
Right now the price of petrol and diesel is unlikely to go down until other oil producers can meet the excess demand caused by the reduction in Russian oil.
The RAC predicted that prices will continue to rise and could reach £2 a litre later in the year, which would mean the price of filling up a 55-litre family car would rise to £110.
An RAC spokesperson said the Government needs to take “drastic action” to help reduce the impact of rising prices on drivers.
The Government cut fuel duty on petrol and diesel in March but there are calls for further reductions to help motorists.
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