Fuel prices hit a record high

Things have been looking increasingly dismal for drivers over recent months when it comes to petrol prices, and for many the rising cost of petrol has caused real financial problems, making it difficult for some motorists to actually afford to run their cars. However, things have now got even worse as a result of prices at the pumps reaching record highs of £1.20.

In July 2008 the soaring cost of oil saw petrol prices reach new highs at the pumps, but the latest prices have now surpassed those seen in 2008. The prices reached their record high just days after the first of three one penny price hikes was added as part of the fuel duty hike, with the other increases due to come in October and January of next year.

Whilst the Chancellor of the Exchequer, Alistair Darling, was hoping that staggering the three pence fuel duty hike would help drivers by avoiding a sudden sharp increase in already high petrol prices drivers have still been hit with the highest prices on record, and things could get worse before they get better due to the rising cost of oil and the weak pound.

Officials from the motoring group the AA said that it was difficult to predict where things would go, as it could depend on a number of factors including how the pound reacted to the general election, which is due in May, and the impact of any tax changes that followed on from the election.

Another industry official stated: “The things that have really put the cost of petrol up more recently has been the fact that our currency has been weaker against the dollar, and that’s actually had a bigger impact than the duty itself. In 2000, the fuel tax was 73.5%. And now, it’s running at about 60%. So tax on fuel, as a percentage, is actually lower at the moment.”

Tags: petrol, GBP, Fuel tax, Exchequer, cost