You are here: Home - Household Bills - News -

Cost of diesel reaches record high

Written by: Emma Lunn
The price of diesel at UK pumps has hit a record high, just a week after petrol prices peaked.

A litre of diesel now costs 147.94p, while petrol costs 144.35p a litre, according to FairFuel UK. The price hikes are bad news for individuals and businesses struggling to cope with the surging cost of living.

FairFuelUK predicted last month that pump prices would hit £1.50 per litre before the end of 2021 – and now says this is likely to happen as early as December.

The main reason for the fuel price hikes has been a doubling in oil costs over the past 12 months, with Brent crude oil currently costing $84 a barrel.

Chancellor Rishi Sunak announced in the Budget last week that rather than a planned increase, the government would keep fuel duty frozen at 57.95 pence per litre for 2022-23, offering some relief to drivers.

Howard Cox, founder of FairFuelUK, said: “With inflation set to rocket and the economy in retreat, this is the time for the Treasury to cut fuel duty and help see off the fiscal turmoil that is about to hit us all.

“The Budget was an opportunity missed by Rishi Sunak to help UK’s 37m drivers. With pump prices breaking new highs every day, it means the Treasury is benefiting in billions of unexpected VAT pump receipts which are growing by the hour. This huge excise windfall to the exchequer should now be passed on to consumers, by lowering fuel duty. Don’t forget, VAT is also charged on the duty itself. A deceitful double taxation that sticks in the motorist’s craw. We are out of the EU, so let’s take back control of our taxes and stop taxing a tax.”

“And to all those pathological enemies of the internal combustion engine, UK drivers still remain one of the top three nations’ highest taxed motorists in the world. They contribute the 4th to 5th largest income to the Treasury with all the motoring taxes they unfailing contribute, and at the same time are subsidising the tax-free travel of EV drivers.”


There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

It’s time to get your finances in shape, and moving your cash savings to a higher paying deal is a good plac...

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

The experts’ guide to sorting out your personal finances in 2021

From opting to ‘low spend’ months to imposing your own ‘cooling-off period’, industry experts reveal t...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week