(Bloomberg) — UK road fuel prices soared to new records, fueling inflation despite a government effort to dampen rising costs for motorists.
Average gasoline prices rose to 167.64 pence ($2.08) per liter at the pump Tuesday, from an earlier high of 167.3 pence, the RAC automotive organization said. Diesel reached 180.88 pence, the third record in four days.
The government cut fuel taxes by 5 pence per liter in March, but said Tuesday that the cut did not appear to have been passed on in any “meaningful way” to gas station prices. Saudi Arabia’s energy minister said last week that a bottleneck in the refining industry was responsible for the rise in fuel costs.
“While the average price of both petrol and diesel would have been much higher without the historic tariff cut, unfortunately drivers have not seen the full benefit at the pump as major retailers have increased their margins,” said RAC. spokesperson Simon Willems.
Diesel futures in Europe rose to an all-time high after Russia’s invasion of Ukraine and are still nearly double their five-year average, while the petrol-to-crude oil premium reached its highest level since at least 2010, according to data collected by Bloomberg. Such strong wholesale values underscore the difficulties governments face in trying to contain rising prices.
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This post UK road fuel prices hit new records, fueling further inflation
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