Petrol prices to hit £2 a litre, warns RAC | moneyfacts.co.uk

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Michael Brown

Content Writer
Published: 08/06/2022

The cost of filling a 55-litre family car has now topped £98 for the first time in history.

The price of an unleaded litre of petrol could soon hit £2, warns the RAC.

“With analysts predicting that oil will average $135 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,” said Simon Williams, Spokesperson for the RAC.

As of Monday, the average price of an unleaded litre of petrol hit 178.50. It now means the cost of filling a 55-litre family car with petrol has now topped £98 for the first time in history. If you wish to fill this car with diesel, a full tank would cost £101.86.

“The oil price is rising due to increased demand for fuel across the world as China eases its COVID-19 restrictions and America and Europe go into the peak summer driving season. All this combined with a weaker pound at $1.2 means wholesale fuel costs more for retailers to buy,” explained Williams.

A record rise in May

The average price of unleaded rose to 174.02p for the month of May. This means the average price of unleaded rose by 11.61p when compared to the month of April according to the RAC.

“This is the second biggest monthly increase on record and comes despite the 5p-a-litre cut in duty,” said Williams.

In March, Chancellor Rishi Sunak announced the 5p fuel levy cut would take place with immediate effect.

In addition, the price of petrol has risen 24p a litre since Russia invaded Ukraine in February, which equates to a further £13 to fill up a 55-litre petrol car.

The increased price of fuel is also having an effect on consumer spending, with a report published by Barclaycard in April claiming it was the driving force behind an increased expenditure in the country.

“While it’s hard to imagine prices getting much worse, the wholesale price of petrol has now gone above diesel,” Williams observed.

Prices on motorways have already exceeded this price, with a litre of petrol costing 187.66p at the end of May, which is almost a 5.5p increase compared to the beginning of the month.

Regional changes

Northern Ireland is the most expensive part of the UK to buy fuel, averaging 175.01p a litre of petrol in May.

It is also the area which registered the highest growth in its prices over the last month, with petrol increasing 12.93p per litre.  

As for the cheapest area to buy the same litre of fuel, the North East came out on top, averaging 172.82p per litre during the same period.

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