Petrol prices will hit £2 a litre this summer - and some service stations are already charging more than that.
The RAC warned motorists it expects the £2 mark to be breached for unleaded fuel due to the pound weakening against the US dollar. Oil is bought in US dollars, so it becomes more expensive for UK motorists if the pound slumps against the American currency.
While average prices at UK forecourts were 175.6p on Monday, a rise of 6p in a week, motorway services are already charging more than £2 per litre. The Moto services, on the A1(M) at Washington, charged 202.9p per litre for unleaded and 204.9 per litre for diesel, on Tuesday June 6.
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RAC fuel spokesman Simon Williams said: “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.
“The oil price is rising due to increased demand for fuel across the world as China eases its Covid restrictions and America and Europe go into the peak summer driving season.
“All this combined with a weaker pound at 1.2 US dollars means wholesale fuel costs more for retailers to buy.
“The wholesale price of diesel is fast approaching 160p a litre which, when you add 7p retailer margin and 20% VAT, would take the pump price over the £2 mark.
“We strongly urge the Government to take drastic action to help soften the impact for drivers from these never-before-seen pump prices.”
The Treasury cut fuel duty by 5p per litre in March.
Separate pump price figures from data firm Experian Catalist – which uses a different methodology to the Government – suggest the average cost of a litre of petrol on Monday was 178.5p, with diesel at 185.2p.
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