Petrol prices hit record high

The average price of petrol has broken through the 140 pence per litre (ppl) mark for the first time ever, according to the AA.

The record-high price came yesterday – just a day after  the Chancellor George Osborne refused to freeze fuel duty. The planned 3ppl duty hike (3.6p per litre once VAT is applied) will go ahead ifrom 1 August.

Diesel prices are also hovering at record levels. The latest figures from the AA show average prices were at 146.72p per litre yesterday.

AA fuel price spokesman Luke Bosdet said: “This is bad news for drivers. But the really sad news is that the Chancellor effectively gave people £250 a year through raising the personal tax allowance and that is fast being eroded by these sky-high fuel prices. The government should have frozen fuel duty.”

Bosdet said that the Government can’t take all the blame for the record high prices, though. “One of the reasons prices are so high is that the pound is 10 cents weaker against the dollar, and every 10 cents change is worth three or four pence at the pump.

“You could argue that if the Chancellor gets his sums right and his budget allows the pound to strengthen against the dollar that pump prices will fall by a lot more than if he had cut duty by 1p per litre. It could do, but we don’t know that for sure. What we do know is that petrol and diesel prices are already at record highs and we’ll see a 3.6p per litre increase come August.”