Bira reacts as fuel prices rocket to new highs

The British Independent Retailers Association (Bira) has responded to the cost of fuel hitting £100 per tank, saying it would further damage consumer confidence.

The average cost of filling a typical family car with petrol has exceeded £100 for the first time on what was labelled a “truly dark day” for drivers.

Figures from data firm Experian Catalist show the average price of a litre of petrol at UK forecourts reached a record 182.3p on Wednesday (8). The average price of a litre of diesel was 188.1p, meaning to fill up a tank of diesel would set a driver back £103.43.

Tuesday (7) saw the price of petrol at UK forecourts making its biggest daily jump in 17 years as a litre of petrol cost an average of 180.73p, jumping by 2.23 pence per litre. It is said to be the biggest one-day increase seen since the early 2000s.

“It’s a truly dark day today for drivers with petrol now crossing the thoroughly depressing threshold of £100 a tank … there’s almost certainly going to be upward inflationary pressure, which is bad news for everybody,” RAC’s Simon Williams said.

Andrew Goodacre, CEO of Bira, said it would further damage consumer confidence, but encouraged people to focus on shopping local more.

Goodacre said: “It is now costing £100 to fill up some cars – and despite the tax cut made by the government, it seems that inflation on fuel is continuing at an alarming rate.

“Breaking the £100 level will further damage consumer confidence which is worrying given the fact that retail sales showed further decline in May.

“Waning consumer confidence is a real concern for all retailers it reduces demand and sales. I hope that consumers will look to reduce travel and shop more locally which would be good for indie retailers (and the environment).

“However, fuel is an essential item and a ‘known value item’ that reinforces the rising cost of living in the eyes of the consumer. In dealing with the cost of living, the government also needs to consider a financial stimulus, such as reducing the level of VAT.”

RAC fuel spokesperson Simon Williams said the accelerating costs of forecourt fuel was “unprecedented”, adding it appeared prices were “still some way from the peak”.