Motoring

Cost of a litre of fuel likely to hit £2, RAC warns

As prices at the pumps again reach new highs, the RAC has said drivers should brace themselves for average fuel prices hitting the £2 a litre mark.

RAC fuel spokesperson Simon Williams said: “The cost of filling a 55-litre family car with petrol has now topped £98 for the first time in history as a result of a litre hitting a new all-time high of 178.5p on Monday.

“Diesel also rose to yet another record by reaching 185.2p which takes the cost of a tank to £101.86.

“With analysts predicting that oil will average $135 a barrel for the rest of this year drivers need to brace themselves for average fuel prices rocketing to £2 a litre which would mean a fill-up would rise to an unbelievable £110.”

Oil prices are continuing to rise due to increased demand for fuel across the world as China eases its Covid restrictions and America and Europe go into the peak summer driving season.

Combined with a weaker pound at $1.2 means wholesale fuel costs more for retailers to buy.

Williams added: “The wholesale price of diesel is fast approaching 160p a litre which, when you add 7p retailer margin and 20 per cent VAT, would take the pump price over the £2 mark.

“We strongly urge the government to take drastic action to help soften the impact for drivers from these never-before-seen pump prices.”

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Mike Ruff

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