UK oil prices – live: Drivers pay ‘incredibly high’ costs as RAC says diesel ‘on track to reach £1.70 a litre’

Drivers queue for fuel in England as motorists are hit by rising oil and diesel prices

With average petrol and diesel costs hitting record highs in the UK, drivers will see ‘unbelievably high prices on the forecourts’, the RAC has warned, as petrol has reached over £2 a liter in some London forecourts.

The average cost of a tank of petrol approached £88 on Thursday, while diesel topped £92 and was “on a clear path at £1.70 a litre”, RAC’s fuel spokesman said, Simon Williams.

But there was a ‘signet of better news’ as crude oil prices stabilized below $120 a barrel after the United Arab Emirates signaled it would push other oil-exporting countries to raise their production to try to fill some of the void left by Russia.

This “could lead, within a week or so, to a slight slowdown in daily pump price increases and less frequent record breaking,” Williams said.

However, experts have warned that oil prices will remain volatile and could rise further, while gas prices are likely to remain high as Europe weanes off Russian supplies.

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Fuel prices hit new record high in UK

The average cost of a liter of petrol on UK forecourts on Thursday was 161.1p – down from 159.6pa the day before, according to data firm Experian Catalist.

The average diesel price rose from 167.4p per liter on Wednesday to a new high of 170.1p.

Andy GregoireMarch 11, 2022 10:08

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Global oil prices likely to remain volatile, analyst says

My colleague Ben Chapman reports:

Despite yesterday’s stabilization, oil prices will remain volatile, according to UBS oil strategist Giovanni Staunovo, who warned that the UAE’s recent announcement backing higher oil production levels may not keep prices down. long time.

“In the short term, no producer can compensate for the significant production disruptions[en Russie]”, did he declare.[inRussia}”hesaid[inRussia}”hesaid

Only Saudi Arabia and the United Arab Emirates are thought to have a significant amount of spare capacity and this can only cover a fraction of the amount that Russia typically exports each day.

Oil-consuming countries should continue to ease upward pressure on prices by releasing more of the strategic reserves they hold.

“All these measures will result in a reduction in spare capacity and strategic stocks, making the oil market even more sensitive to further supply disruptions,” Staunovo said. “Ultimately, prices may have to rise even more… This would destroy demand and bring it back in line with available supply.”

This would mean higher inflation for households. Capital Economics recently raised its consumer price inflation forecast, predicting that rising energy bills will push the cost of living indicator to 7.3% in October.

At KPMG, inflation peaks at 10%, which would mean a steep pay cut in real terms for millions of people in the UK.

Andy GregoireMarch 11, 2022 9:49 a.m.

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Oil supply unaffected after drone attack at Riyadh refinery, official says

A refinery in the Saudi capital, Riyadh, was attacked by a drone yesterday morning, but the oil supply was not affected, reports the official news agency SPA.

The attack caused a small fire that caused no injuries or casualties, the SPA said, citing a statement from an energy ministry official.

It came as the UAE’s decision to signal that with a huge vacuum left by Russia it would push other oil-exporting countries to ramp up production was hailed by experts as the catalyst for stabilizing oil prices. world crude prices yesterday.

The world’s top oil exporter has faced frequent missile and drone attacks by the Iran-aligned Houthi group in Yemen, which has announced no strikes against the kingdom in recent days and the Iran-led coalition. Saudi Arabia has not released a statement regarding Thursday’s incident.

Andy GregoireMarch 11, 2022 09:30

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Cut VAT to help families weather cost of living storm, demand Lib Dems

Our political editor Andre Bécasse has this exclusive report on calls for wider VAT cuts:

Liberal Democrat leader Sir Ed Davey today presented a bold plan to help families weather the cost of living crisis with a 2.5 per cent cut in VAT over a year, paid for in part by a windfall tax extended to energy companies.

Talk to The Independent on the eve of his party’s annual spring conference, Sir Ed said Boris Johnson and Rishi Sunak had failed to take the ‘drastic’ action needed to protect voters from what is shaping up to be the toughest economic storm for 50 years.

He said cutting VAT from 20% to 17.5% would put an average of £600 a year in the pockets of struggling families.

The £18billion cost would be funded partly by borrowing – “the right thing to do in a one-off crisis”, he says – and partly by an increase in the “Robin Hood” tax on oil giants and North Sea gas tanks demanded by Lib Dém.

Having previously called for a £5billion levy, Sir Ed now says he would increase the take to around £10billion to reflect the additional profits made “on the back of Putin’s aggression” in Ukraine.

Andy GregoireMarch 11, 2022 08:59

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Rishi Sunak says to reduce VAT on petrol and diesel

The transport industry has called on the government to cut VAT on petrol and diesel as rising prices are creating a “really quite difficult” situation for drivers.

Simon Williams, fuel spokesman for the RAC, told BBC Radio 4 this morning: ‘We know from our long-term research that eight out of 10 drivers would struggle without their cars, so having access to a car in the event of a pandemic has also become more important, and therefore it is really very difficult now.”

‘The cost to fill up is over £88 for petrol and £92 for diesel,’ he said, adding that the pandemic had already driven up prices.

The RAC is urging the Chancellor, Rishi Sunak, to act, he said, adding: ‘One thing he could do is reduce VAT on petrol and diesel.

‘At the moment only the VAT, which of course is called a tax on a tax, yields 26p per litre, so bringing that down to 15% would instantly reduce it by around sixpence per litre.’

Andy GregoireMarch 11, 2022 08:38

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Motorists “will see incredibly high prices on the forecourts”

As average UK petrol and diesel prices hit record highs this week, RAC fuel spokesman Simon Williams said: ‘A tank of petrol now costs nearly £88 £ while diesel has now topped £92.

“Diesel unfortunately appears to be on track for £1.70 per litre.

“As this is an average price, drivers will see incredibly high prices on the forecourts as retailers pass on their increased wholesale costs.

“But there was a hint of better news yesterday in the wholesale market with substantial gasoline and diesel declines which could lead, in a week or so, to a slight slowdown in daily price increases at the pump, and to records broken less frequently.”

Andy GregoireMarch 11, 2022 08:29

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Falling oil prices provide relief to UK households

UK households finally got some positive cost of living news on Thursday after two weeks of sharp oil price rises, my colleague Ben Chapman reports.

Oil prices stabilized below $120 a barrel yesterday, after recent surges drove up the cost of filling gas tanks across the country.

A major oil supply disruption as Russia stepped up its bombardment of Ukrainian towns had driven petrol and diesel prices to new record highs almost daily, adding to the pressure facing UK consumers .

Experts said upward pressure on oil prices had eased after the United Arab Emirates signaled it would push other oil-exporting countries to increase production.

Analysts shelved their more pessimistic forecast for oil at $200 a barrel and said lower prices could provide respite for struggling consumers, although any change in wholesale prices will take a few weeks to ripple through. British forecourts.

This means petrol could briefly hit £1.80 a liter before falling again, according to estimates from consultancy Capital Economics.

Andy GregoireMarch 11, 2022 08:21

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Hello, we will be using this blog to bring you live updates on the cost of fuel in the UK as Vladimir Putin’s war on Ukraine hits world oil prices.

Andy GregoireMarch 11, 2022 08:17

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