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Daily Mirror
Daily Mirror
Business
Sam Barker

Diesel prices hit record high prices as petrol soars in crippling blow to drivers

Diesel prices have hit record highs, with petrol at its second-highest rate, in a major blow to drivers.

Petrol now costs 167.67p a litre, a rise of 2.58p on last week, government figures show.

Diesel is 181.14p a litre, up from last week's 179.67p.

The record high for petrol was set in March this year, at 165.37p, while the former top price for diesel was last week.

Labour is calling for a windfall tax on the soaring profits of oil and gas giants as customers' bills rise - a move which has not been ruled out by Mr Sunak and Boris Johnson.

The news comes as households continue to grapple with a cost of living crisis, with the Bank of England warning inflation could reach highs of 10% by Christmas and the UK could dip into a recession.

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."

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.

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