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Daily Mirror
Daily Mirror
Business
Sam Barker

Drivers facing 'national crisis' as experts warn fuel will hit £2 per litre nationwide

Motorists are facing a "national fuel crisis" as petrol and diesel prices hit all-time highs, experts warn.

The average litre of petrol now costs 175.5p, up from 168.8p last week - the previous record high.

Meanwhile, government figures show a litre of diesel is setting drivers back 185.3p, compared to 181.5p a week ago.

Petrol has risen in price 21% since the start of the year, and diesel 24%.

The soaring cost of driving is becoming a national crisis, according to the RAC motoring organisation.

RAC fuel spokesperson Simon Williams said: "More radical government intervention is urgently needed, whether that’s in the form of a further reduction in fuel duty or a VAT cut.

"As it is, drivers surely won’t be able to cope unless something is done to help.

Drivers are being hammered at the pumps (In Pictures via Getty Images)

“This is fast becoming a national crisis for the country’s 32 million car drivers as well as countless businesses.”

He added: “With analysts predicting that oil will average $135 US dollars a barrel for the rest of this year, drivers need to brace themselves for average fuel prices rocketing to £2 a litre, which would mean a fill-up would rise to an unbelievable £110.“

Some motorway stations, which are typically more expensive compared to other places, are already charging £2 per litre.

James Andrews, personal finance expert at Money.co.uk, said: "Consumers are being hit from all sides but nowhere is this as obvious than at the pumps. Petrol prices have surged 36.5% in a year, rising by four times the rate of inflation.

“It’s a pace that is obliterating people’s disposable income. It both eclipses and exacerbates the wider cost of living crisis, which saw CPI hit 9% in April — a pace that was already causing sleepless nights over at the Bank of England."

Why are petrol and diesel prices so high?

Simply, oil prices are rising because it is more in demand and this has been made worse by the war in Ukraine.

There were already shortages that sent fuel skyrocketing last year and now businesses are cutting off ties to Russian oil. This means that the current crisis could well get worse - and more expensive.

The UK only gets around 6-8% of its crude oil from Russia and a 2020 Autocar report estimates around 18% of UK diesel is from the country.

This is not the same for much of Europe - around half of the barrels of oil Russia produces every day goes to the continent, with the country the world's third-biggest supplier of oil.

The UK is hoping to totally phase out the use of Russian oil by the end of 2022. The EU is far more reliant on oil and has so far committed to drop its usage by around two-thirds.

With countries turning away from Russian oil, there is demand for it elsewhere, which pushes the prices up.

Labour has spoken out about high fuel costs and called for a 'windfall tax' on fuel giants to help hard-up Brits.

Labour's shadow secretary of state for transport Louise Haigh has said: "Working people are facing a cost of living crisis, and the Conservatives have literally nothing to offer.

"Labour's plan would help households through this crisis with up to £600 cut off energy bills, funded by one-off windfall tax on the oil and gas giants taking working people for a ride at the petrol pump.

"The Conservative government needs to set out an emergency budget to tackle its cost of living crisis - and support Labour's call to put money back in the pockets of working people."

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