Petrol and diesel prices hit record highs

The prices of fuel at UK forecourts have hit record highs, as the cost of living crisis intensifies, amid reports that 5 pence cut in duty is not being passed onto motorists.

The average pump price for petrol reached 167.64p a litre, the RAC said, surpassing the previous record of 167.30p set on 22 March.

Diesel prices rose to an average of 180.90p a litre at the end of Tuesday (17), passing the previous peak of 180.29p reached the previous day. The prices of both fuels could be pushed higher by a full EU ban on Russian energy imports.

The highs come amid accusations that petrol retailers have been profiteering by not passing on the 5p a litre cut to fuel duty announced by the chancellor, Rishi Sunak, in the spring statement in March.

Business minister Kwasi Kwarteng said on Tuesday (17) that he had written to petrol retailers over concern a cut in fuel duty was not being passed on to consumers, adding he had asked the competition regulator to investigate.

The Times had earlier reported that a 5 pence cut in duty, announced by the government in March, was not being passed onto motorists who have seen prices soar due to a surge in oil prices worldwide.

Kwarteng wrote to the heads of the Petroleum Industry Association, the Fuel Distributors Association, the Petrol Retailers Association and the Downstream Fuel Association, saying people were “frustrated” the cut did not appear to have affected forecourt prices “in any visible or meaningful way”.

“As a result of perceived intransigence to date – and on my instruction – my officials recently engaged the Competition and Markets Authority about this issue,” he said in the letter.

Urging retailers to rectify this, he had asked the Competition and Markets Authority to look into the matter.