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Petrol price hits record high of 142.9p a litre as oil continues to soar

Petrol price hits record high of 142.9p a litre as oil continues to soar

Petrol prices have hit a new record high in the UK as global oil prices continue to soar.

Breakdown specialist RAC said its Fuel Watch tracker found the average price of petrol hit record high of 142.94p a litre on Sunday, eclipsing the previous all-time high of 142.48p reached in April 2012. The price of unleaded has now risen 28p in a year, adding £15 to the cost of filling up the average family car.

“This is truly a dark day for drivers, and one which we hoped we wouldn’t see again after the high prices of April 2012,” RAC spokesperson Simon Williams said. “This will hurt many household budgets and no doubt have knock-on implications for the wider economy.”

Surging prices have been driven by a global spike in oil prices. Brent crude has risen around 60% so far this year to $86 a barrel. That is the highest price since October 2014.

Oil prices have spiked due to surging demand and constricted supply. Pent up demand during lockdown has led to surging demand for fuel as global trade resumes. Meanwhile, supply remains below pre-pandemic levels. OPEC voted to cut output during the pandemic to stop prices crashing but has been slow to bring back supply as normality resumes.

“The big question now is: where will it stop and what price will petrol hit?” said Williams. “If oil gets to $100 a barrel, we could very easily see the average price climb to 150p a litre.

“We urge the Government to help ease the burden at the pumps by temporarily reducing VAT and for the biggest retailers to bring the amount they make on every litre of petrol back down to the level it was prior to the pandemic.”

Tax makes up 57% of the price at the pump, according to RAC. A temporary tax cut could help ease the burden on household finances at a time when other costs are soaring.

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