RAC: Unfortunately, drivers with diesel vehicles need to brace themselves for yet more pain at the pumps. Had Mr Sunak reduced VAT to 15% as we call on him to do instead of cutting duty by 5p, drivers of diesel vehicles would be around 2p a litre better off, or £1 for every full tank. As it is, drivers are still paying 27p VAT on petrol and 29p on diesel, which is just the same as before the Spring Statement
Liberal Democrat Leader Ed Davey has called on Boris Johnson to haul petrol firm bosses into Downing Street, after research by the RAC found they have failed to pass on nearly half of the fuel duty cut to consumers.
The Liberal Democrats are also calling for an emergency VAT cut that would save the average family £600 a year.
“This Conservative government is sitting on its hands and allowing petrol firms to rake in eye-watering profits at the expense of hard-pressed families,” said Davey. “This government’s failure to tackle soaring prices of petrol and diesel is hitting our rural communities hardest. They need help now, instead we have a government in chaos that is raising taxes again and again. It’s high time Boris Johnson hauled petrol retailers into Downing Street to grill them on why the fuel duty cut hasn’t been passed on. Ministers need to act now to tackle this petrol profiteering and slash taxes to put money back into people’s pockets”.
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Less than two months after Chancellor Rishi Sunak announced a 5p a litre cut on the average price of fuel – diesel prices have reached a record high price of 180.29p a litre. The previous high of 179.90p was recorded on March 23rd 2022 – the day of the Spring Statement from Sunak.
In recent weeks, the UK government has tried to move away from its reliance on importing Russian oil, following President Putin’s invasion of Ukraine. Worryingly for drivers of petrol cars, the price per litre is fast approaching the record levels of 167.3p per litre set on March 22nd.
“Sadly, despite the Chancellor’s 5p a litre duty cut the average price of a litre of diesel has hit a new record high at 180.29p,” said RAC fuel spokesperson Simon Williams. “Efforts to move away from importing Russian diesel have led to a tightening of supply and pushed up the price retailers pay for diesel. While the wholesale price has eased in the last few days this is likely to be temporary, especially if the EU agrees to ban imports of Russian oil.
“Unfortunately, drivers with diesel vehicles need to brace themselves for yet more pain at the pumps. Had Mr Sunak reduced VAT to 15% as we call on him to do instead of cutting duty by 5p, drivers of diesel vehicles would be around 2p a litre better off, or £1 for every full tank. As it is, drivers are still paying 27p VAT on petrol and 29p on diesel, which is just the same as before the Spring Statement.
“The average price of petrol is also on the rise having gone up nearly 3p a litre since the start of the month to 166.65p which means it’s less than a penny away from the all-time high of 167.30p set on 22 March.”
Can’t Pay Bills
Analysis of Google search data reveals that online searches for “Can’t pay bills” exploded 1,049% in the United Kingdom on 10th May 2022, after increases in the cost of living.
Analysis by Boiler Central reveals that online interest in “Can’t pay bills” skyrocketed to more than ten times the average volume in one day as the cost of living rises.
“The cost of living has skyrocketed this year, with inflation being at a 30 year high at 7%,” said a spokesperson from Boiler Central commented on the findings. “This has led to the cost of everything increasing, such as food and fuel, but the highest rise has been seen in household bills, which have gone up by nearly £700 on average. One crucial reason for bills is due to energy companies seeing wholesale prices increasing around the world, and these increased costs are being passed on to their customers.”
These findings offer a fascinating insight into the reaction to the rising cost of living and it will be interesting to see if it continues into the Summer. It will also be interesting to see how the government reacts and if they will implement grants or schemes to help those struggling to pay their bills.”
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