Government under pressure to cut tax duty after petrol prices reach record high again

The average price of a litre of petrol at UK forecourts has climbed to 185.0p

Published

Pressure on the Government to take action on fuel prices intensified after the average cost of petrol reached a new high.

The RAC said a further cut in duty this week would be “very welcome, albeit overdue”.

Figures from data firm Experian show the average price of a litre of petrol at UK forecourts climbed to a record 185.0p on Sunday.

That is an increase of 7.1p in just a week.

The average price of diesel was 190.9p per litre on Sunday.

Petrol prices have hit a record high up and down the country
Petrol prices have hit a record high up and down the country

A 5p per litre cut in fuel duty was implemented by the Treasury in March, but the Government has claimed the reduction is not being reflected in pump prices by all retailers.

The wholesale cost of fuel has soared since the measure was introduced.

RAC fuel spokesman Simon Williams described the “speed and scale” of the rise in fuel prices as “staggering”.

He went on: “This must surely put more pressure on the Government to take action to ensure drivers don’t endure a summer of discontent at the pumps.

“We hope the Government’s persistent talk about the importance of retailers passing on March’s 5p duty cut fully is a precursor to an announcement of a deeper cut this week.

“If that’s the case, it’s very welcome, albeit overdue as the 5p cut has been well and truly overtaken by events on the wholesale market since then.”

Business Secretary Kwasi Kwarteng ordered an “urgent” investigation into petrol station operators over the weekend amid concerns some are pocketing the 5p cut.

In a letter to the Competition and Markets Authority, the Cabinet minister wrote that people were “rightly frustrated” that the reduction had not stopped prices from soaring.