Diesel prices reach record high of 180.29p a litre
At the end of March, we heard from Chancellor Rishi Sunak in the Spring Statement where he announced a 5p a litre cut on the average price of fuel. Despite this, the price per litre of petrol is fast approaching the record levels set on March 22nd. Diesel prices have also reached a record high of 180.29p a litre, which is up from 179.90 on the day of the Spring Statement.
We all know that as a result of the invasion of Ukraine, the UK government is trying to move away from importing Russian oil but this is adding to the concerns on pricing. A fuel spokesperson for RAC comments, “Efforts to move away from importing Russian diesel have led to a tightening of supply and pushed up the price retailers pay for diesel. While the wholesale price has eased in the last few days this is likely to be temporary, especially if the EU agrees to ban imports of Russian oil.”
Should the Chancellor have instead reduced VAT?
Simon Williams, RAC fuel spokesperson goes on to say that a reduction in VAT to 15% would have had better results for drivers who are feeling the pinch of other increases such as gas and electricity at this time.
“Had Mr Sunak reduced VAT to 15% as we call on him to do instead of cutting duty by 5p, drivers of diesel vehicles would be around 2p a litre better off, or £1 for every full tank. As it is, drivers are still paying 27p VAT on petrol and 29p on diesel, which is just the same as before the Spring Statement.”
At Car Magic and Non-Fault Car Accident Repair, we’ve definitely seen an increase in fuel costs which affects our day to day business. Is the increase in diesel prices having an impact on your driving habits? Is the price of petrol and diesel changing the way you use your car?