Petrol Prices Fuelling Inflation
The AA recently warned that recent petrol and diesel price increases could risk damaging the UK government’s inflation targets and signal the arrival of record UK prices in the near future.
Insurance comparison site Tiger.co.uk, home of cheap car insurance quotes for many of the UK’s motorists, has learned from the AA’s research that petrol pump prices have risen a massive 2.5% in the last month, equating to increases of 3.3p per litre of petrol and 3.2p per litre of diesel. These bring average prices up to 135.5p and 140.5p for petrol and diesel respectively, still short of the record highs of 142.5p and 147.9p recorded in April this year. However with wholesale oil price increases not yet having found their way through to the pumps – partially due to heavy price promotions at supermarkets – there are fears that prices will continue to soar over the coming weeks.
These recent increases have lead to a two-car family spending £10 more per month on fuel than they were last month. Collectively, Britain’s motorists will be spending a staggering £4.85 million per day more at the pumps than they were just six weeks ago.
The AA is warning that these increases, caused by rising oil prices and market speculators rather than by increased demand from motorists, are even threatening the Bank of England’s inflation targets.
Tiger.co.uk’s Commercial Director, Andrew Goulborn, advised Britain’s motorists to shop around for cheap petrol and diesel in the same way that they now shop for cheap car insurance quotes: “There’s not much that motorists can do about the general trend in increasing fuel prices but in the short term there is continued heavyweight competition amongst supermarkets and we would encourage drivers to make the most of the many promotions they are offering. And of course any driver who’s looking to renew their motor insurance policy in the next month can also get some great deals on Tiger.co.uk!”