Fuel prices reach record high

8 Mar, 2012 2:18pm Julie Sinclair Comments

Petrol and diesel prices are the highest they've ever been, and they're set to increase further

Fuel prices have hit record highs, sparking fresh protests against fuel duty. Average petrol prices currently stand at 137.97ppl and 145.07ppl for diesel, with experts predicting they will continue to rise.

The pressure group FairFuelUK organised a mass lobby of Parliament yesterday (7 March), with 300 people taking part. The group entered Parliament to lobby MPs face to face and deliver a report to No.10 written by the independent Centre for Economics and Business Research (CEBR).

The CEBR used the Government's own economic model to assess the impact of cutting fuel duty by 2.5p and found it would boost the economy and create 180,000 new jobs.

The Government plans to increase fuel duty by 3 pence per litre in August this year, deferred from January 2012. But when Conservative MP Andrea Leadsom was asked during a TV debate with FairFuel's Lynne Beaumont, if the Government had modelled the impact of a 3p increase to duty, Leadsom responded: "Of course not."

Leadsom did leave the Government some room for manoeuvre, however, saying: “We don’t know what the Chancellor actually intends to do in the budget, it may well be that he has something up his sleeve in terms of fuel duty.”

FairFuelUK don't expect a formal response from the Government to their mass lobby but hope MPs, who have all been sent a copy of the report, will persuade the Chancellor to act.

There’s been no talk of direct action, last seen on a large scale in September 2000. Then, oil refineries and distribution depots were blockaded after petrol reached 80ppl, resulting in the end of the Labour Government’s fuel duty escalator.

Industry analysts predict global factors mean prices will keep rising. Retail Motor Industry, Chairman for Petrol, Brian Madderson, said: “There is more grim news ahead as a perfect storm of rising crude oil prices, closing refineries and increased tensions in the Middle East, mean that by Easter we could see diesel and petrol prices going even higher.”

An inflationary rise, also planned for August 2012 and estimated by the AA to amount to an additional 5ppl, was cancelled in the Chancellor’s Autumn statement.

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Submitted by Rych1506 on Tue, 2012-03-13 14:51.

This is a typical response from any government party. If it finds itself short of money then they always put up petrol prices without them actually realising that that has a knock on effect on other prices which also causes inflation and more hardship for the elderly. It is about time that they looked elsewhere for the income like stopping fraudulent claims, taking a cut in their perks etc

Submitted by Cyeber on Tue, 2012-03-13 18:29.

South Africa used to be a cheap place to live, but even there prices of everything are shooting up making the country less attractive to foriegn investors who were always the life-blood of the thrieving economy. It seems no matter where you live around the world, prices of most products are fast on the increase. Is it possible another great depression is looming if governments dont stop the current trend!!

Submitted by Richard_H on Wed, 2012-03-14 12:29.

The nearest petrol station is just round the corner and the Diesel, this morning was 141.9 pence per litre

The BP garagge about half a mile up the road is 149.9!

How can that be?

I know its not supposed to be a cartel, but......

And still prople go to the BP garage!

Submitted by brianthelion on Wed, 2012-03-14 17:06.

Just before the general election, Cameron was quoted in a Mike Rutherford interview (Telegraph, 29th April 2010) as saying he was a friend of the motorist and his government had to do things differently to Labour.

He specifically said his government should bring fuel prices down, but has since whacked them up. It's little consolation that the £25Bn or so in fuel taxes goes to build roads in Poland when we can't even fix our own potholes.

Too much money is wasted abroad (EU contributions, overseas aid to India who says she doesn't need it), wind farm subsidies etc). Cameron should stop playing Father Christmas with money that has to be squeezed out of drivers and keep his promise!