Petrol: Unleaded fuel prices drop during lockdown

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This price surpasses the previous high of 147.93p set in April 2012 and the rise comes just a week after the cost of unleaded petrol also reached a new peak. The RAC said diesel has now rocketed by 30p a litre in a year, making a full 55-litre tank £16 more expensive at £81. And the motoring organisation warned the increase will hit the UK’s 12.5million diesel car drivers along with companies.

Britain has some 4.5million vans and 525,000 heavy goods vehicles, the vast majority of which run on diesel.

RAC fuel spokesman Simon Williams said: “While this isn’t unexpected as petrol has already hit a record price, it’s still another body blow to drivers and businesses who were already struggling to cope with rising costs.

“This will also have a knock-on effect on the price we pay for goods and services as diesel is very much the fuel of business and, as such, will contribute further to inflation.” The prime reason for higher pump prices is the fact oil has doubled to more than $80 a barrel from $40 a year ago, but the figure is also strongly affected by the high cost of the biodiesel.

Currently, around 10 percent of the diesel bought at forecourts consists of biodiesel, which contributes around 16p a litre to the cost whereas “pure” diesel – 93 percent – makes up around 40p. Biodiesel is also three and a half times the price of diesel itself on the wholesale market – with a tonne costing around £1,800 against diesel, which is £520.

Mr Williams added: “The price of biodiesel is now two and a half times what it was 12 months ago.

“This means that the biodiesel content in a litre has now rocketed from 7p to 16p, while the pure diesel component has now doubled from 20p to 40p.

“Unlike with petrol where retailers have increased their margin on every litre sold compared to 2012, the profit being taken on diesel is the same as it was nine and a half years ago.

“So we are pleased to report this is not adversely contributing to the price at the pumps.”

The average price of unleaded petrol last week rose to 142.94p a litre, exceeding the 142.48p all-time peak on April 16, 2012.

Howard Cox, founder of FairFuelUK, said: “We predicted a month ago that pump prices would hit £1.50 per litre before the end of 2021.

“The impact on low-income families, small businesses, hauliers and the supply chain is crippling and getting worse.”

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