UK petrol prices could hit £2 a litre this summer, RAC warns

·Finance Reporter, Yahoo Finance UK
·2-min read
petrol pump at a Petrol Station
Average petrol prices will hit £2 per litre this summer, motorists are being warned. Photo: PA

Drivers should brace themselves for an average pump price of £2 a litre this summer as oil prices surge.

That would mean filling up an average car would cost £110.

Government figures show the average price of a litre of petrol at UK forecourts on Monday was a record 175.6p, up 6.6p from 169.0p seven days earlier.

Read more: New UK car sales plummet to second worst May in 30 years

Average diesel prices increased by 3.7p per litre over the same period, reaching 185.3p.

That was the largest weekly increase for both fuels since March.

Simon Williams at the RAC said: “With analysts predicting that oil will average 135 US dollars 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.

“The oil price is rising 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.

“All this combined with a weaker pound at 1.2 US dollars means wholesale fuel costs more for retailers to buy.

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

Pump price of unleaded petrol.  Infographic PA Graphics
Pump price of unleaded petrol. Infographic PA Graphics

Chancellor Rishi Sunak introduced a 5p-a-litre fuel duty cut at the end of March but the policy has done little to slow down the rising fuel prices.

Read more: Petrol cost closes on £100 prompting calls for government intervention

Separate pump price figures from data firm Experian Catalist – which uses a different methodology to the Government – suggest the average cost of a litre of petrol on Monday was 178.5p, with diesel at 185.2p.

Watch: Why are gas prices rising

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