Why petrol prices are so high in the UK
Why are petrol prices so high in the UK?
As the prices of petrol rocket higher and higher in the UK, many drivers are wondering what the cause is for the sudden rise in petrol prices. Drivers are finding it more and more difficult to run their cars, with the average price of petrol at Â£1.40 per litre.
Diesel is the most expensive to buy, with a litre costing as much as Â£1.53 at some UK petrol stations.
Fuel prices are the highest they have been for the last three years.
So why is petrol suddenly so expensive in the UK? Is it going to decrease in price eventually? Read on to discover the answers to some of the most frequently asked questions about petrol in the world today.
Average UK fuel prices
According to www.petrolprices.com, as of 14th April 2011, fuel prices are as follows:
Unleaded -- average 135.29p, minimum 129.9p, maximum 147.9p
Diesel -- average 141.60p, minimum 130.9p, maximum 154.9p
LRP -- average 138.76p, minimum 132.9p, maximum 138.9p
Super -- average 142.70p, minimum 129.9p, maximum 155.9p
LPG -- average 76.45p, minimum 68.9p, maximum 84.9p
The rise in VAT
On 4th January 2011, VAT rose from 17.5% to 20%, a record high, meaning that the price of almost everything increased. Yep, including the price of fuel.
A litre of Unleaded petrol cost on average Â£1.34 on the 4th January 2011, and isn't much different today. However, drivers shouldn't get too happy yet, as the price of a litre of Unleaded is expected to rise to Â£1.50.
Rise in Duty
Not only did VAT increase, but there was also a government fuel duty increase of 76p on both petrol and diesel. That took place on New Year's Day 2011.
The AA estimated back then that the fuel duty increase would add an extra 3.5p per litre of both petrol and diesel.
Fuel duty is also known as fuel tax.
Approximately 60% of what you pay for your fuel is tax.
The Earthquake in Japan
The Sendai Earthquake and tsunami in Japan caused damage to the Fukushima Daiichi nuclear plant.
Why does that make any difference?
Because it's one of the largest power plants in the world, and of course, when it was damaged, the production stopped. Not only did this cause gas prices to rise, oil prices also rose, causing petrol and diesel prices to increase as well.
Read more about The Japan Earthquake - How YOU Can Help
In a worse case scenario, drivers could be paying up to Â£2 per litre to keeps their car running! If the situation is Libya gets worse, fuel prices will definitely rise.
Alan Duncan spoke to The Times newspaper, where he said, "If this (Libya) does go wrong, Â£1.30 at the pump could look like a luxury."
So don't be too quick to complain, drivers!
Are you a driver?
Where can you get the cheapest fuel?
You can now find the cheapest petrol stations in your area!
Petrol Prices let's you sign up and find the cheapest petrol stations near you.
Maybe your petrol won't cost you an arm and a leg anymore!
Which petrol stations are offering to help you?
They're offering discounts!
Supermarkets are trying to help out drivers a bit, and are offering money off petrol and diesel.
From 18th April 2011, Morrisons will be offering 6p off per litre for those who spend over Â£40 in store with their new "Fuel Britannia" deal.
Sainsbury's are offering a similar deal, but they will only give you 3.5p off per litre.
The Co-op is also in on the act, and you can get 5p off per litre at their petrol station, providing you have spent Â£40 or more in store.
Morrisons seem to have a lovely motive behind their offer. "We know that over the Easter holidays and the royal wedding, motorists will want to travel further to visit friends and relatives, but will be put off by the cost of petrol," said Richard Lancaster, Morrisons marketing director. "Our offer ensures that our customers can enjoy this time and worry less about the cost."
How fuel prices have escalated in the past 2 years
Say what you want, have a moan, have a rant...