Petrol & Diesel Prices - 10 things you need to know
May, 22, 2008
The trip to fill up the car with fuel is becoming more daunting by the day, as pump prices hit ever increasing record highs.
With analysts predicting further hikes in the months to come, here at SaveBorrowSpend we’re struggling to bring you some news to cheer about, so hey it’s bad news again as we bring you ten things you need to know about the cost of fuel.
1. Across the UK the average price for unleaded petrol has hit 112.55p a litre and diesel stands at a staggering 125.4p. In some parts of the country figures are as high as 122.9p for unleaded and 135.9p for diesel.
2. In just a month, the AA says the price of filling up the average Mondeo-sized car with unleaded petrol has risen by £2.20! The diesel driver has been even harder hit, needing to find an extra £3.40 to fill up a tank. So just spare a thought for the poor hauliers.
Best buy loans
3. There has been a 20% rise in petrol and diesel prices in the last year, according to the Office of National Statistics; the steepest annual rise since records began 11 years ago.
4. In the past decade, diesel cars have become increasingly popular due to good fuel economy and lower CO2 emissions, and now around 45% of new cars sold in the UK are diesels. But times are changing and as the gap widens between petrol and diesel prices, the benefits are diminishing fast. So why are diesel prices experiencing such increases? The experts point to increased demand from India and China (one of the reasons given for some food price hikes, as well) and a shortage of refining facilities.
Save 20% with Budget Insurance
5. The combination of rises in fuel prices, road-tax and car insurance (the AA says insurance bills have risen 6% year on year) means the cost of running a car has risen nearly £2,000 since this time last year.
6. The cost of crude oil has broken another all-time high this week of more than $135 a barrel. It's easy to forget that back in January, there was widespread concern oil had reached a record high of $100 a barrel.
7. Investment bank Goldman Sachs is warning prices could reach $141 a barrel in the second half of 2008 ($200 by 2010) and some experts are forecasting as high as $150.
8. Some analysts are forecasting unleaded petrol at 150p a litre by the Autumn. Umm… the price of diesel doesn’t even bear thinking about (and I'm a diesel car owner!).
See how much you can save with Scottish Power
9. It is worth remembering that more than 60% of the pump price goes to the Treasury through duty and VAT. We pay the highest duty and VAT on fuel in Europe and for every $4 a barrel increase in oil, Chancellor Alistair Darling gets a staggering £1.5 million a day.
10. Soaring prices have lead to a 20% increase in the number of forecourt thefts and the thieves are adopting ever more devious tactics. Auto Express says one method thieves are using is to disguise their number plates with sticky tape to try and avoid being caught by forecourt cameras. There are also reports, from across the country, that criminal gangs are targeting cars and lorries, drilling holes in fuel tanks to drain out the fuel, which can then be sold on the Black Market.
Free mortgage quote and advice
So who can we blame for soaring prices?
The oil giants?
Shell, BP, Esso - they're all an obvious target for our anger, as they reap in multi-billion pound profits while the poor motorist pays the price at the pump. Oil company bosses however insist the money comes from exploration and production rather than forecourt sales, which make less than 1p a litre.
The Government?
For many the Government deserves a share of our fury, with Treasury coffers burgeoning with rising duty and VAT. An olive branch was offered in the March Budget when the scheduled 2p increase in duty was postponed for six months. But motoring haulage and business groups are now urging the planned rise to be scrapped altogether and many say duty must be lowered.
Saving for retirement?
OPEC?
Gordon Brown is venting his frustration on the oil cartel which controls around 40% of the world’s oil supplies. This week Mr Brown denounced OPEC as a scandal and urged the EU and the G8 to break down its control. The Government rejects the view, held by some, that oil price rises are due to speculation, it lays the blame squarely at OPEC’s door, for failing to balance supply and demand.
Unfortunately whoever we blame, it doesn't stop the rising prices. A recent poll by MoneyExpert.com claimed one in four motorists have been forced off the road and onto public transport by rising costs.
SaveBorrowSpend Philippa Adam
