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#343239 - 18th Aug 2009 7:13pm Petrol prices could reach £1.20 by end of year
BMW Joe Offline
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Registered: 30th Apr 2006
Posts: 12369
Loc: Birkenhead
Petrol prices could rise to £1.20 a litre by the end of the year, the RAC has warned.



Pump prices on forecourts across the country have increased by around 20p a litre since the start of 2009, adding £11 to the cost of filling up an average tank.

But if prices continue to rise at their present rate, then the average cost is likely to be around 105.5p by the end of August with another 2.3p in fuel duty added from September 1.

The latest hikes, triggered by the escalating cost of crude oil, are expected to return prices to last summer's record high when oil peaked at $147 a barrel.

The RAC said that if VAT returns to 17.5 per cent, petrol could hit the £1.20 mark by the end of December.

John Franklin, of the RAC, said: "Hard pressed motorists have seen a steady rise in the price of petrol since the start of the year which sees no sign of ending.

"And to make things worse the Government will be adding a further 2.3p to the price when fuel duty goes up on September 1.

"With the additional increase in December, when VAT reverts back to 17.5 per cent, it is looking more and more likely that petrol prices will head towards last summer's record highs of 120p a litre."

Mr Franklin added: "The Government really needs to take a close look at these planned increases because escalating petrol prices will hit hard-working families the most during tough economic times."

The RAC says that the average price for a litre of unleaded is now 103.9p but in many parts of Britain drivers are paying much more.

In Braintreee, Essex and Solihull, West Midlands, it costs 114.9p a litre, in Merthyr Tydfil, South Wales, it is 112p a litre while in Carlisle, Cumbria, and Truro, Cornwall, it is 110.9p.

The hikes brought new accusations of profiteering by oil companies.

While wholesale oil prices have continued to climb in recent months, rising to $70 dollars a barrel last week, prices at the pumps have risen at a much faster rate.

When crude oil was at $70 dollars a barrel in June 2007, the average price of petrol was 97p – almost 7p cheaper than now.

The RAC said: "The rising price in oil is certainly a factor in this. But it does seem to be the case that petrol prices rise quickly when oil goes up but fall slowly when the price of oil drops."
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#343242 - 18th Aug 2009 7:15pm Re: Petrol prices could reach £1.20 by end of year [Re: BMW Joe]
MattLFC Offline
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Registered: 14th Aug 2004
Posts: 22315
Loc: Moreton/Beirut/Mobile
Gutted, ive just gone for a much thirstier car, just as fuel prices are about to skyrocket!!

I did have a feeling it would happen though, so it's a-ok by me hehe! Now is the time for the government to remove the illegal VAT from the fuel price and save us 8p or so!!

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#343246 - 18th Aug 2009 7:20pm Re: Petrol prices could reach £1.20 by end of year [Re: MattLFC]
BMW Joe Offline
Wiki Master

Registered: 30th Apr 2006
Posts: 12369
Loc: Birkenhead
withthat tax on tax no

Glad I've got my bike now grin £9 to fill the tank, 100 miles smile
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Cruisewirral.com - The Northwest's Biggest forum of Modified Car Enthusiasts.

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#343249 - 18th Aug 2009 7:21pm Re: Petrol prices could reach £1.20 by end of year [Re: BMW Joe]
MattLFC Offline
Wiki Master

Registered: 14th Aug 2004
Posts: 22315
Loc: Moreton/Beirut/Mobile
Dunno, my car is about 30mpg atm average, mixture of driving, but i checked the air filter earlier on, and clogged isnt the word!! So it may just improve (speaking of which, Halfords were actually cheap at £9 for them, shame they had none in though!).

I guess thats about 80 mils for £10 or something?

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#343951 - 21st Aug 2009 6:29pm Re: Petrol prices could reach £1.20 by end of year [Re: MattLFC]
DavidB Offline
Wiki Guide

Registered: 7th Dec 2003
Posts: 5595
Loc: Bebington, Wirral
I've just got a 60mpg car as I'm sick of refuelling. Petrol should've dropped to 89p p/l a few months ago, but didn't. It's not more expensive than diesel, which is usually 10% more.
I'm getting bored of getting angry about it, it's not fair.
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#343980 - 21st Aug 2009 10:11pm Re: Petrol prices could reach £1.20 by end of year [Re: DavidB]
MattLFC Offline
Wiki Master

Registered: 14th Aug 2004
Posts: 22315
Loc: Moreton/Beirut/Mobile
Lifes a bitch, and then you marry one. We are just gonna have to live with it im afraid. And next year, LPG is fairly likely to have the tax-break removed!

30mpg and no more Biodiesel for me either! Oh well, I have more important fish to fry haha laugh

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