Fuel prices hit record new high on UK forecourts as litre of diesel costs 170.1p

The average cost of a litre of diesel reached a new high on Thursday, up from 167.4p on Wednesday

Fuel prices at a petrol station in Wimborne, England on Friday (Getty Images)

Fuel prices have hit a new high at UK forecourts, despite a slump in wholesale fuel costs.

Figures from data firm Experian Catalist show the average cost of a litre of petrol at UK forecourts on Thursday was 161.1p, up from 159.6p on Wednesday.

The average cost of a litre of diesel reached a new high of 170.1p on Thursday, up from 167.4p on Wednesday.

Oil prices have skyrocketed following Russia’s invasion of Ukraine, leading to higher wholesale costs for fuel retailers, and increased prices for Britons when they go to fill up.

RAC fuel spokesman Simon Williams said drivers will be “wondering whether these record rises are ever going to stop” and revealed that wholesale prices are starting to fall.

He said: “While prices may well continue to go up in the coming days, oil and wholesale fuel prices dropped for the second day in a row yesterday which should hopefully slow, or even halt, the cycle of escalating pump prices in the next week or so as retailers buy new stock at lower prices.

“There is, however, a concern they will be reluctant to lower their prices for fear of catching a cold if wholesale costs were to jump back up again.

“The oil price drop, which was the biggest since the early stages of the pandemic, was caused by traders becoming less concerned about supply disruption.

RAC fuel spokesman Simon Williams said drivers will be “wondering whether these record rises are ever going to stop” (Joe Giddens/PA) (PA Archive)

“The barrel price fell almost nine US dollars on Thursday from 129.41 dollars to 120.99 dollars having already come down from nearly 138 dollars on Tuesday.”

Mr Williams said the RAC is calling on chancellor Rishi Sunak to deal with rising prices by reducing VAT on petrol and diesel.

He said: “At the moment, just the VAT, which is of course called a tax on a tax, is bringing 26 pence per litre so, bringing that back to 15% would instantly cut it by about six pence per litre.”

The hefty price hikes have also led to a petition calling for fuel duty and VAT on fuel to be reduced by 40 per cent for two years. Nearly 50,000 people have signed the petition posted on the UK Government and Parliament website.

Meanwhile, the Irish government has already responded to the increased costs and reduced excise duty on fuel on Thursday. A cut of 20 cents per litre on petrol and 15 cents per litre on diesel will be in place until the end of August.