The AA has announced the largest jump in forecourt prices over the past generation. Now it will cost £3.07 more to top up the tank. The one-two punch of stiffer world markets oil prices and higher taxes loaded on 6.13 pence for every litre from the middle of December to that of January. The result was a cost of 128.27.
Since the oil crisis set off by the Isreali War in the Middle East in 1973, this is the biggest increase in petrol prices.
The AA speculates that motoring itself might be limited to a very few soon who can afford the coming £6 per gallon price. Diesel jumped from 126.18p per litre in December to 132.75 in the middle of this month, which is a 6.55p per litre increase.
A day has not gone by this past month when the cost of putting fuel in the tank has not risen.
AA’s president, Edmund King, said, “We have research that indicates that over 60% of drivers are reducing usage of their car, other spending items, or even both in some cases.”
“If the Government does not establish some stability to the rising petrol prices, for example, by doing away with the coming April fuel duty increase, the tax revenue will be far less, with motorists reducing their amount of travel.
“The Government will soon have to face the music as fewer drivers can pay the cost of fuel. They are robbing Peter to pay Paul, jacking up inflation while snatching money from other areas.”
For a family that owns two cars the monthly fuel expense has jumped £34.60.
The majority of the blame for the current hike can be put on the fuel duty increase of January at 0.76 pence per litre, but also on the 2.5% increase in VAT, which translates to 2.5 pence per litre.