Petrol prices have risen to a new all-time high, as motorists brace for more pain at the pump following the European Union’s decision to abandon efforts to totally prohibit Russian oil imports.
According to new data from Experian Catalist, the average price of a litre of petrol at UK forecourts hit a new high of 173p on Tuesday.
According to the RAC, the cost of filling up a typical 55-litre family car with unleaded now stands at £95.16. According to industry sources, £45 of that cost is now taxed.
They also cautioned that ‘worst is tragically yet to come,’ with analysts predicting that petrol will hit 180p per litre in the coming days as crude oil prices continue to rise.
The news marks the latest hammer blow for Britain’s 33million motorists, many of whom will be tightening the purse strings amid an existing cost of living crisis.
It could also spell fresh pain at the pumps for drivers planning on getaways during the Platinum Jubilee Bank Holiday and over the half-term break.
Brussels’ bureaucrats agreed a watered-down ban on Russian fuel imports brought in by sea on Monday.
A partial oil embargo marks a significant climbdown for the EU since Commission President Ursula von der Leyen proposed a complete ban four weeks ago.
RAC fuel spokesman Simon Williams said: ‘The EU’s decision to ban the majority of Russian oil imports will cause the barrel price to go higher still, spelling yet more misery for fuel prices in the UK.
‘The wholesale price of petrol has already been increasing due to the increased summer driving demand which means we are likely to see average forecourt prices for petrol climb to 180p a litre in a matter of days.
‘Sadly, far worse will follow as the current oil price of $122 will likely lead to an average price of a litre of unleaded hitting 185p.’
EU council president Charles Michel announced the 27-nation bloc had agreed a ban covering more than two-thirds of Russian oil imports on Monday evening.
There are ambitions to ban 90 per cent of Russian fuel entering the bloc by 2023, officials say – having previously promised a complete embargo on their fuel.
The watered-down embargo covers only Russian oil brought in by sea, allowing a temporary exemption for imports delivered by pipeline.
Ukrainian president Volodymr Zelensky criticised the bloc’s bickering stance as it was revealed the EU will continue to pay Putin tens of billions of euros per year for gas – a key source of income for Russia – after it was exempted from sanctions earlier this year.
The partial oil embargo marks a significant climbdown for the EU since Commission President Ursula von der Leyen proposed a complete ban four weeks ago.
Viktor Orban, Hungary’s hardline leader who shares good ties with Moscow, had been bitterly opposed – saying cutting his country off from Russian oil would be like dropping a ‘nuclear bomb’ on its economy.
In the event, leaders agreed to a ban on Russian oil being brought in by sea – which Council President Charles Michel said on Monday would mean cutting off 70 per cent of supplies.
Taken together with unilateral action from Germany and Poland to shut off pipeline oil, it will mean an effective ban of 90 per cent by the end of the year, he added.
The ban will deprive Russia’s economy of hundreds of billions of dollars in trade, along with billions more in coal exports which have already been banned.
It forms part of a sixth package of sanction on Russia which will be published later this week, including cutting off another of its banks from the Swift payment system, as well as restrictions on more state media and asset freezes for individuals.
The latest development could signal the return of the derisory situation millions of motorists faced in March, when fuel prices were hitting new records daily.
Soaring fuel prices are a blow to families embarking on half-term trips and people planning to travel over the four-day Platinum Jubilee bank holiday period, which begins on Thursday.
Diesel prices were also at record levels on Monday, after the average price hit 182.7p per litre over the weekend.
Steve Gooding, director of the RAC Foundation, said: ‘Millions of drivers will now be faced with a bill of £100 or more to fill up their cars.
‘While many drivers will sensibly be seeking to maximise their miles per gallon by going easy on the throttle, the risk now is that some might misjudge the difference between running low and running out in the hope that tomorrow’s prices will be lower.
‘But we wouldn’t bet against the pain increasing further, with oil pushing up above the 120 US dollars a barrel mark and the wholesale price of petrol still rising.’
It comes as MailOnline revealed British drivers are paying more in fuel tax than they did 12 months ago – even after Rishi Sunak’s 5p per litre cut, a new analysis of pump prices has revealed.
Figures show how hard-pressed motorists in the UK are forking out more in taxes per tank of petrol than most EU countries, including Ireland, Italy and Spain.
And diesel drivers are paying more in taxes per tank than any EU country.
Meanwhile, a new poll has found more than half of Britons blame the Government for rising petrol prices, as ministers face renewed calls to slash VAT on fuel.
Based on official figures from the Department for Business, Energy and Industrial Strategy (BEIS), the analysis revealed Britons are currently paying £44 in taxes on petrol each time they fill up a typical car with a 55-litre tank.
This is 55p more than they were paying in April last year, despite the Chancellor having cut fuel duty by 5p per litre on 23rd March this year.
The analysis of BEIS figures, conducted by the Liberal Democrats, also showed diesel drivers are paying £45 in taxes per tank each time they fill up.
Ministers are under pressure to ensure petrol stations are passing on Mr Sunak’s 5p per litre cut in fuel duty to motorists.
It has been claimed firms are ‘profiteering’ from the reduced levy by failing to pass on the full cut at the pumps.
The developments come as it was widely reported Prime Minister Boris Johnson is ready to name and shame those firms that are refusing to drop their prices at the forecourts for Britain’s beleaguered drivers.
The PM is pushing for action after figures last week showed average petrol prices exceeded £1.70 per litre for the first time – despite the Chancellor introducing a 5p per litre duty cut on March 23.
Department for Transport officials have been tasked with drawing up plans to ‘name and shame’ garages that choose to raise profit margins rather than pass on the cut to customers.
According to Sunday Telegraph, Transport Secretary Grant Shapps has suggested a ‘pump watch’ name-and-shame scheme.
A Downing Street source said: ‘Officials are considering mechanisms available to expose those companies that aren’t passing on tax benefits to consumers.’
A spokesperson for the Prime Minister today said the Government was ‘exploring our options’ with regards to further action, after Business Secretary Kwasi Kwarteng wrote to petrol firms earlier this month to warn they could face legal action.
In a letter to industry leaders, the Cabinet minister informed them he had asked the competition watchdog to ‘closely monitor’ fuel prices.
And Mr Kwarteng said he had been ‘reassured’ the Competition and Markets Authority would ‘not hesitate to use their powers’ if they found law breaches.