Filling up a tank should be fairly cheaper than what it is right now, RAC found (Picture: PA/Getty/SWNS)
Drivers are being told to brace themselves for the costliest trip to see loved ones this Christmas as fuel prices hit record highs.
The cost of diesel at the pump is 176p a litre – 27p more than in 2021, according to RAC’s fuel watch.
Petrol now sits at around 153p, 7p higher than 12 months ago.
This means it costs motorists £84 to fill up their petrol tanks – a £4 hike – despite tumbling wholesale gas prices driven by declining worldwide energy demands.
Instead, petrol prices should be 15p a litre cheaper, the RAC found.
The average diesel car, meanwhile, now costs nearly £97 to fill – almost £15 more than last year (£82). Diesel should cost 13p less than it does.
Though, the insurance company says the price of both ‘should fall sharply’ soon.
RAC spokesman Simon Williams said: ‘With the cost-of-living crisis making this one of the toughest Christmases on record, it is even more galling to know drivers are being heartlessly overcharged for fuel, making this the most expensive ever festive getaway on the roads.
The RAC predicts most fuel prices will fall soon (Picture: RAC / Sky Armstrong)
Millions are expected to take to the roads this week ahead of the holidays (Picture: Maureen McLean/Shutterstock)
‘The big four supermarkets, which dominate fuel retailing, have refused to significantly lower their forecourt prices to reflect what’s happened with the substantial reduction in the price of wholesale fuel they are enjoying.’
The RAC says that though petrol prices dropped last month, supermarkets didn’t decrease the cost across filling stations.
Around 34 million motorists are expected to head out onto the road ahead of Christmas tomorrow and Saturday.
But people don’t have many other options when it comes to seeing relatives over the holidays, says Angela Terry, chief executive group of green lifestyle website One Home.
‘Wouldn’t it be lovely if it was possible to travel around the UK using an efficient, reliable public transport system?’ she told Metro.co.uk.
”Car companies use Nordic landscapes like forests and coastal scenes to promote SUVs. But they are inefficient and cost more to buy and run and fuel prices don’t look like they are coming down.
‘If we want to protect Christmas for our children we have to tackle climate change and transport is the biggest source of emissions in the UK.’
In 2000, diesel cost nearly 82p. Now it’s 176p (Picture: Getty Images)
The Competition and Markets Authority, a government regulator, found this month that some petrol providers are resorting to ‘rocket and feather’ pricing.
This means when wholesale fuel costs rose, supermarkets were quick to up fuel prices – the ‘rocket’ – but slow to pass on savings when these costs dropped – the ‘feather’.
Paul Mummery, head of media at the road transport trade group Road Haulage Association, said the price leaps will also impact people who drive for a living.
‘Soaring fuel prices are having a major impact on transport firms which has contributed to a near 20% increase in our members’ operating costs this year,’ he said.
‘They typically operate on paper-thin margins – often only 2-3% – so have little choice but to pass these crippling costs on which inevitably hit shoppers at the till.’
As petrol station operators feel the pressure, prime minister Rishi Sunak is also facing scrutiny for failing to rule out a 12p fuel duty increase in the spring.
Rishi Sunak hasn’t ruled out a fuel duty rise (Picture: Simon Walker / No10 Downing Street)
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Fuel duty was cut by 5p per litre earlier this year by then Chancellor Sunak.
But last month, the government spending watchdog Office for Budget Responsibility hinted at a potential fuel duty law change.
It said there would be a planned 23% increase in the fuel duty rate in late March 2023 as the government tightens its belt.
Facing a grilling by the Commons Liaison Committee yesterday, Sunak was tight-lipped when asked whether this will actually happen.
He told MPs: ‘Having previously had his job, I always preferred it when the prime minister made absolutely no comment about future tax policy, so I will very much adhere to that.’
This simply won’t do, said Howard Cox, the founder of the lobbying group FairFuelUK.
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‘The perfect seasonal offering to the world’s highest taxed drivers, would be for the Chancellor and the prime minister to herald, right now, there’ll definitely be no fuel duty hike in the March budget,’ he told Metro.co.uk.
‘The senseless, will he or won’t he political shenanigans, that seems to bring delight to both these out of touch rich politicians, brings nothing but uncertainty to businesses, UK’s chronically demonised drivers and the economy.’
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Fuel prices have reached record-breaking highs ahead of Christmas.