People on lower incomes are having to sell their cars amid the cost-of-living crisis, according to an AA survey of 15,000 drivers, the company’s president Edmund King has said. His comments came as the cost of filling up the average family car soared past £100 for the first time.
Mr King told BBC Radio 4’s World At One programme: “We did a survey of 15,000 drivers and 2% of those on low incomes are actually having to give up their cars. And 27% on low incomes are actually having to cut back on their food bills, because they live in rural areas, they need their car to get to work and there is no public transport.
“So, it’s having a much broader effect across the whole economy, and the whole economy and businesses are suffering as a result.”
Figures from data firm Experian show the average price of a litre of petrol at UK forecourts reached a record 182.3p on Wednesday (June 8). That was an increase of 1.6p compared with Tuesday, taking the average cost of filling a 55-litre family car to £100.27.
Mr King has urged the Government to introduce a “fuel price checker” which would let people know the cheapest price on offer in their local area, telling World At One: “There is a massive price variation (in fuel) across the country. So, what we’ve called for from the Government today is to introduce a fuel price checker.
“They have this in Northern Ireland, it’s run by the Consumer Council, and actually publishes the average price, the cheapest price and the highest price in every town, city, in every area. As a result, prices in Northern Ireland are actually 6p a litre both in petrol and diesel cheaper than the rest of the UK, because it brings in competition.
“So, that and a fuel price stabiliser, I think, would help individuals and the economy.”
Reacting to news of the soaring cost of petrol, Prime Minister Boris Johnson warned fuel firms that the Government was watching them to ensure tax cuts were passed on to motorists. Answering questions from journalists in Blackpool, he said: “We made a cut already… the biggest cut ever in fuel duty.
“What I want to see is those cuts in taxation not just swallowed up in one gulp, without touching the gullet of the fuel companies, I want to see those cuts having an impact on the pumps. And we are watching very closely to see what happens.”
Mr Johnson said many companies “don’t want to just take profit, they do have a sense of responsibility, but we need to see it”.
RAC fuel spokesman Simon Williams said: “It’s a truly dark day today for drivers with petrol now crossing the thoroughly depressing threshold of £100 a tank (£100.27p). A complete diesel fill-up now costs £103.43.
“With average prices so high – 182.31p for a litre of unleaded and 188.05p for diesel – there’s almost certainly going to be upward inflationary pressure, which is bad news for everybody. While fuel prices have been setting new records on a daily basis, households up and down the country may never have expected to see the cost of filling an average-sized family car reach three figures.
“With RAC research showing as many as eight in 10 depend on their cars, many must be wondering if any further financial support from the Government will be forthcoming. March’s 5p fuel duty cut now looks paltry as wholesale petrol costs have already increased by five times that amount since the Spring Statement (25p).
“A further duty cut or a temporary reduction in VAT would go a long way towards helping drivers, especially those on lower incomes who have no choice other than to drive.”
