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Cost of diesel reaches record high

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Written by: Emma Lunn
01/11/2021
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.”

 

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