Fuel Prices on the Rise in the UK
In the United Kingdom, drivers are facing one of the biggest fuel price jumps in decades. The cost of petrol and diesel has risen by more than 10% since the start of the year, with the average price of petrol now at its highest level since 2014. This has been driven by a combination of factors, including rising global oil prices, the weakening of the pound against the dollar, and the introduction of a new fuel duty.
Global Oil Prices
The global oil market has been in flux in recent months, with prices rising due to a combination of factors. The Organization of the Petroleum Exporting Countries (OPEC) and its allies have been cutting production in an effort to prop up prices, while the US has imposed sanctions on Iran and Venezuela, two major oil producers. This has led to a tightening of the global oil supply, pushing up prices.
At the same time, the US dollar has been strengthening against the pound, making it more expensive for UK drivers to buy petrol and diesel. This has been compounded by the introduction of a new fuel duty in April, which has added an extra 3.02 pence per litre to the cost of petrol and diesel.
Impact on Drivers
The rising cost of fuel has had a significant impact on UK drivers. According to the RAC, the average cost of petrol is now 128.8 pence per litre, while diesel is at 131.7 pence per litre. This is the highest level since 2014, and is likely to put further pressure on household budgets.
The RAC has also warned that the cost of fuel could rise further in the coming months, as the global oil market remains volatile. This could have a significant impact on drivers, particularly those on low incomes who are already struggling to make ends meet.
Government Response
The government has come under pressure to address the rising cost of fuel. The opposition Labour Party has called for the government to scrap the fuel duty increase, while the Liberal Democrats have called for a freeze on fuel prices.
The government has so far resisted calls to intervene, arguing that the rising cost of fuel is a result of global market forces. However, it has said that it is monitoring the situation closely and is ready to act if necessary.
The Future of Fuel Prices
It remains to be seen how the situation will develop in the coming months. The global oil market is likely to remain volatile, and the pound could continue to weaken against the dollar. This could lead to further increases in the cost of fuel, putting further pressure on UK drivers.
At the same time, the government could decide to intervene if the situation worsens. This could include scrapping the fuel duty increase or introducing measures to help low-income drivers.
Whatever happens, it is clear that UK drivers are facing one of the biggest fuel price jumps in decades. This is likely to have a significant impact on household budgets, and could lead to further calls for the government to intervene.