Fuel prices have hit a three-year high as result of hike in the cost of crude oil due to rising tensions in the Middle East which has filtered through to the pumps.
Crude oil prices have hit $77.75 a barrel, which is the highest figure since November 2014. However, in late 2009, the price of a barrel of crude oil had hit $140.
As a result of the price increases, motorists are having to economise to keep on the road. Industry experts have said the recent price hikes are a consequence of US President Donald Trump’s decision to pull out of the Iranian nuclear deal leading to insecurity in the Middle East.
According to a survey by Confused.com, petrol prices range from 120.7 in Blackpool to 130.6 in Lerwick with motorists on the Isle of Man, and West London also paying a premium
Motorists on the M3 at Fleet services were today charged 141.9 for a litre of petrol and 144.9 for diesel following recent increases in the price of crude oil
Business development manager Tom Lynch, pictured today at Fleet Services, travels approximately 40,000 miles per year in his Mercedes E-Class diesel and is unimpressed by the rising price of fuel. He described the cost today as ‘quite surprising’
Government figures released this week showed the average cost of a litre of petrol was £1.23 while diesel cost £1.27 – meaning families with an average car face the prospect of paying £70 to fill up a the pumps.
A year ago, petrol was 8p a litre cheaper while diesel cost 10p less.
Barry Hiscox, 76, from Coventry, said the price spike has hit hard – and may lead to cutting back in other areas.
The retired graphic designer described how his wife Lily racks up the miles driving to Birmingham five or six days a week to care for her sister, who recently underwent surgery on her knee.
The great-grandfather, who owns a Ford Fusion, said: ‘The wife drives a lot, she has no option.
Barry Hiscox, 76, from Coventry, said the price spike has hit hard – and may lead to cutting back in other areas. He said he currently spends around £125-a-month on fuel
‘We spend £125 a month but it’s going to go up a lot. Today was the first time I really noticed how expensive it was to fill up.
‘I don’t know if we’ll have to cut back elsewhere but we’re going to have to be careful.
‘Fuel is a necessity for us, it’s bloody annoying.
‘Public transport is terrible, if I need to get across Coventry it takes hours.’
Every day Susan Turner, 68, from Nuneaton, drives from Nuneaton to nearby Bedworth to care for her 95-year-old mother.
The former doctor surgery manager also travels to see her grandchildren in Coventry several times a week.
She was shocked to see how much fuel prices had risen today.
‘I was disgusted’, she said.
Susan Turner, 68, from Nuneaton, pictured, is shocked and disgusted by the price hikes
‘I’m backwards and forwards a lot. I drive a Citroen C1, a small car, and am filling up every week.
‘It’s £90 a month and its going to go up.
‘If I didn’t travel I couldn’t see the grandchildren as their mums work and it would be hard to come to me.’
Public transport is not an option as it is infrequent and takes a long time.
She added: ‘Use trains and buses? You must be joking. It would take forever.
‘I feel sorry for some people who will get hit hard.
‘I’ll have to look at my budget as I’ve only got a state pension and NHS pension.’
At Fleet Services on the M3, One Stop, run by Shell charges 141.9 pence per litre for its ‘FuelSave’ unleaded petrol today, around 20 pence more than the price paid at a supermarket pump.
Chandra Adhikari, a 31-year-old hospitality worker, pictured today at a BP garage in Reading, Berkshire, said he believes fuel has gone up around 15p a litre over the past 12 months
Tom Lynch, a business development manager, drives around 40,000 miles per year and was not impressed with the hike at services.
The 54-year-old, who owns a diesel Mercedes E Class, said: ‘I travel a lot and this is quite surprising. I would expect to pay about 136.9 pence per litre on motorways and A roads, but not 144.9 like here.
‘I normally try and use Tesco as it’s cheap.’
The price of diesel at the Fleet services was 144.9 pence per litre.
Another man, who did not want to be identified, said: ‘The prices are atrocious, particularly when fuel by the barrel is on the decline price-wise.
Motorists at the BP garage in Reading, Berkshire were paying almost £1.26 and £1.30 for a litre of petrol and diesel respectively
‘The service stations will drop the price, and then sneak it back up again, and it never seems to get reported.’
Chandra Adhikari, a 31-year-old hospitality worker, said that he was paying about 15p more for a litre than this time last year.
‘It cost about 110.9 per litre this time last year,’ he said.
‘I prefer supermarkets as they are the cheapest, but the aren’t always convenient. It’s normally only possible to go to them when I’m already doing a shop.’
Mr Adhikari, who has a petrol Nissan Almera that he drives around 8,000 miles a year, was not impressed with prices on motorways.
He continued: ‘They make you pay extra just for the same thing, it’s like they’re trying to take advantage of you.
Tanye Telfer, pictured with her Vauxhall Corsa said she isn’t concerned by the price hikes
Peter Roberts, pictured at the Asda supermarket in Wembley Park admitted he thinks the price of fuel is getting silly
‘I always try to fill up before I go on the motorway to get around the prices.’
Motorists in west London had mixed opinions on the effect of fuel prices, but agreed on one thing – the cost has got too high.
Tanye Telfer, 36, has been driving for 12 years and doesn’t let the future of fuel affect her.
She said: ‘I’m not worried about where things are going.
‘I know that I can’t change it, so I’m not concerned – I’m a really safe driver too.
‘This keeps my costs down, so does not using my air con and not going too far.
‘I wouldn’t switch to an electric car, to be honest I don’t trust them, it’s not about the cost.
‘That person that died after that driverless car too, I’d rather stick with what I know.’
The mother of one from Harlesden, London, added: “I spend about £50 a month and I’m fine.
Simon Patison, pictured in Wembley Park said he shops around to find the best price
‘When I fill up I always come to here at Asda, it just gets you further, some other companies water down their fuel I swear.’
Will Leysham, 48, from West London, has been driving for 30 years and fills up his car every two weeks.
He said: ‘The last year or so it seems the cost has gone up a bit – there’s a 20 pence difference at least.
‘I’m a bit cautious when it comes to my mileage now and I drive carefully.’
The policeman added: ‘It’s only going to go up, I’m concerned about the way it’s going for the future.
‘I’ve been driving 30 years now, I drive every day and fill up my car every two weeks.
‘I do about 7-8000 miles a year.
‘Probably 20 years ago it was 70 pence a litre and it meant I didn’t care about keeping an eye on the pump.’
Simon Patison 31, said: ‘Now it does matter – it’s getting more expensive too often.
‘I’m not exactly worried at this stage, I pick where I fill up each week, normally supermarkets.’
The Leighton Buzzard resident commutes to central London each day for work at the Met Police.
He said: ‘I do about £40 every three or four days.
‘It does make you wonder about the future, with this particular climate especially, I hope prices don’t go any higher.’
Peter Roberts, 42 said: ‘It must cost me £40-60 a week, but I only drive to the bodyshop where I work.
Engineer Joe Lee, pictured, said he’s considering buying a hybrid car to cut fuel costs
‘I used to fill up on just £5 – now it doesn’t last me, I barely make it to the end of the week before I’m thinking of it again.
‘I’ve been driving for over thirty years now, the prices are getting silly, I have to budget a bit more now.’
Tiago Afonso 32, said: ‘The price does matter to me, I keep an eye on it.
‘I’ve thought about getting an electric car – to cut costs but also for the ozone layer.’
The Citroen Picasso driver from Southfields, London, said he is worried about the future when it comes to increasing fuel prices.
He said: ‘I go to the same station in south London, the price is cheaper there so If I have to make the trip I do.
Joe Lee, 50, an engineer from Wembley, London has been driving for 30 years.
He said: ‘Of course it concerns me, it’s enough money anyway.
‘I go to the supermarket because it’s cheaper, some places are a bit much.
‘It tends to get you a bit further as well.
‘I keep an eye on the speed as I go, and that way I don’t need to come back so quick.
Amin Majid, pictured, said he might get an electric car as the price of fuel keeps ‘going up and up’ leaving him in ‘despair’
‘Who knows what will happen in the future – I’d think about getting a Hybrid car.’
Amin Majid, 46, said: ‘I do about £120 every two to three weeks.
‘It’s just going up and up.
‘Some times I go to the station and despair – it’s up again.
‘Maybe in the future I’ll get an electric car and do away with all this.
‘I have family in Luton and I cut back the drive, sometimes it’s just too much.’
Rukib Uddin, 37, drives a BMW Seven Series – which costs him £100 per week.
He said: ‘I try to fuel up at this station, it’s cheaper.
‘I try to avoid filling up in central, it’s a lot cheaper here.
‘I go to where the cheapest fuel is, sometimes I run the fuel right down looking for a good place.
Mr Uddin runs a small taxi firm, where he insists drivers pay their own way with fuel, but helps where he can.
He said: ‘I’ve been in London my whole life – I remember when a litre of fuel was cheaper than a can of coke – 25 pence.
‘I used to love a drive out somewhere, but these days I can’t be bothered with it.’
Malik Khan, 25, from west London, said: ‘Mate, it’s going to go up either way, I can’t let it affect me.
Rukib Uddin, left, and Taigo Afonso, right, were both filling their cars at the Asda store in Park Royal, London earlier today. Mr Uddin said he could remember when a litre of fuel was cheaper than a can of coke, while Mr Afonso said he’s considering going electric
‘Maybe my parents check it but me – I don’t.
‘It wouldn’t stop me driving, you have to pay for things and the taxes go so somewhere.’
Gezim Gjionocj, from Serbia, said: ‘It doesn’t matter to me, I never check the price of fuel.
‘I don’t waste time, it doesn’t matter.’
The 39-year-old Ferrari driver said that he doesn’t remember to look at the price when he fills up.
He said: ‘Of course if I could get it cheaper I would – but it’s all the same today.’
Karl Hunt, left, said he spends around £40-a week on petrol, while Dominique Sze, right, uses £45-a-week in her Vauxhall Mervia
Motorists in Liverpool were paying between 117.7 and 125.9 per litre of petrol depending on where they filled up their cars
At a BP garage in Sefton Street, Liverpool, a litre of petrol costs 125.9p and diesel is 128.9p
Mother-of-one Dominique Sze, 40, from Liverpool said she spends an average of £45 a week on filling up her Vauxhall Meriva.
The tattoo parlour owner said: ‘With a child I really notice when prices are going up.
‘It just makes life a lot more difficult especially if you’re trying to get out and about. It’s an added expense.
‘You ask yourself “where am I going to find the money from?”.
‘I run an independent business and that’s difficult enough with all the taxes you have to pay and then driving to and from work.
‘It always seems like the little man gets the most taken from them.’
Theresa Lewis, left, said the price hikes will eat into her budget meaning she might even have to sell her car, while Harpeet Singh, right, does around 600 miles a week in his car
Administrator Teresa Lewis said she is using her Vauxhall Corsa less and less due to the cost.
The 62-year-old said: ‘If it’s going up by that much that will be really noticeable. It will really eat into my budget.
‘I try not to use the car too much and have cut down on long journeys because of the price and because it’s a big expense.
‘I’m approaching pension age and looking at keeping costs down. I think the car will be the first thing to go.’
Ben Curry, 51, who does around 7,000 miles a year in his Jaguar XF, said another price hike is ‘outrageous’.
The painter and decorator said: ‘It’s totally out of order. It’s a total rip off and motorists are getting fleeced every day.
‘The worse thing is they don’t reinvest the money back into the roads. I’ve had to spend a lot fixing my car because of the potholes.
‘It’s ridiculous. They’re so quick to put the prices up. They’ll put them up straight away but will take ages to bring them down again.
‘The government doesn’t mind. They’re happy because they’re taxing it and will get more out of it.’
At this Asda service station in Liverpool, petrol was 117.7p and diesel was 122.7p per litre
At an Asda petrol station in Smithdown Road, Liverpool, a litre of petrol costs 117.7p and diesel costs 122.7p.
Bank worker Karl Hunt, 29, from Liverpool, who owns a Ford Fiesta, said: ‘It’s expensive enough as it is now.
‘I spend about £40 a week on petrol.
‘It’s a necessity nowadays so you don’t really have a choice. You have to pay it.
‘My wife has to travel to Warrington for work and needs the car so you really notice when the prices go up.
‘You just have to hope they’ll go down again.’
Taxi driver Harpreet Singh, 38, from Liverpool, said he does around 600 miles a week in his Ford Focus.
Mr Singh said: ‘Prices are always going up. As a taxi driver I’m filling up every day and I notice how high they are now compared to a few years ago.
‘It feels like it’s not fair to pass it on to the customer when the prices don’t go down that often.
‘Petrol is an everyday item and I think it will really affect family budgets.
‘I usually fill up at the supermarket because it’s cheaper.’
Oil price analysts predict the Middle Eastern uncertainty will see crude prices rise even further
Geographical location can make a major difference in what motorists pay at the pumps.
According to a survey by Confused.com, drivers in Blackpool, Wigan, Edinburgh Bradford and Liverpool pay around £1.21-£1.22 a litre, compared to those in Lerwick, who are paying almost £1.31, with those on the Outer Hebridies facing bills of £1.29. Kirkwall, the Isle of Man and West London all cost in the region of £1.27 a litre.
Diesel owners pay between £1.24 and £1.33 depending on location.
In April 2012, the average price of a litre of petrol was £1.42 while diesel cost £1.48
According to the AA: ‘The industry’s rule of thumb is that a $2 change in the price of oil, at a constant exchange rate, causes a 1p change at the pump.
‘Lower-income drivers are already under pressure from rising pump prices and any new increase makes their finances even more difficult.
‘This could worsen if the Europeans fail to keep the Iran nuclear deal alive and the commodity market speculators cash in.’
RAC fuel spokesman Simon Williams said: ‘Motorists are definitely feeling the effect of rising fuel costs, but things may be about to get a whole lot worse as a result of the United States’ decision to pull out of the Iran nuclear agreement.
‘The price of oil has already jumped on the back of this news which will lead to even higher prices at the pumps.
‘Last month saw almost 3p a litre being added to the average price of petrol and diesel making it the worst monthly fuel price rise since December 2016.
In January 2015 the cost of litre of unleaded fell below £1 at the Harvest Energy Petrol Station in Maypole, Birmingham
‘And sadly, we fear we may see another couple of pence a litre going on as a result of the higher oil price and the fact the pound has slumped to a four-month low at $1.35.
‘This could take the average cost of a litre of unleaded to 126.5p – a price last seen in October 2014 – which would make filling up a 55-litre family car cost nearly £70.’
Out of the £1.23.27 a litre figure, the government takes 20 per cent in VAT and 57.95 in duty, leaving 40.67 for the actual fuel. The VAT is added to the cost of the fuel including the duty.
AA president Edmund King said: ‘Once again, we’re beginning to see the spectre of some drivers having to make a choice between cutting back on household expenditure or being able to afford to drive to work.
‘With rising mortgage costs and higher pension contributions, more and more drivers are being pushed towards that precipice.
‘We already know that higher pump prices last year diverted £1 billion more to the pump, away from potential high street spending.
‘With the non-fuel retail sector valued at £366 billion last year, that drain from dearer fuel is equivalent to a day’s turnover in UK shops.’
In New York, oil traders predicted the price of crude was set to increase even further as a result of new sanctions imposed by the UK against Iran.
The United States plans to impose new sanctions against Iran, which produces around 4 percent of global oil supplies, after abandoning an agreement reached in late 2015 which limited Tehran’s nuclear ambitions in exchange for removing U.S.-Europe sanctions.
Oil prices rose sharply in response to the announced measures.
Fereidun Fesharaki, founder of energy consultancy FGE predicted massive further hikes in the price of crude oil.
‘Oil prices will certainly move up, and $90-100 per barrel prices may again be on the cards.’
10 simple tips on making your car more fuel efficient: How to beat the petrol station price hikes
Tim Alcock of LeaseVan.co.uk said driving in a more economical fashion can help reduce fuel bills by allowing motorists to travel further on a single tank.
He said: ‘The dramatic rise in oil price and its knock-on effect on the cost of fuel means drivers are inevitably suffering a bigger dent to their wallets too.
‘But there are ways to try and keep this extra cost to a minimum.
‘By simply being more aware of how you drive around day-to-day and implementing some easy driving habits, drivers should be able to see a noticeable difference in their fuel consumption.
‘Most vehicles on the roads today have a built-in system that measures your mpg, and some newer vehicles come with even more sophisticated displays that analyse speed variations, shift points for manual transmissions, and driving behaviours such as acceleration and braking times – this is a great way to see if these tips improve your efficiency.
‘Take note of your mpg driving normally for a week and challenge yourself to do better. Implement these tips then take note of your mpg again after a week – the results might surprise you. Many drivers consume 15 per cent less fuel by acting on the feedback that fuel consumption displays provide.’
10 tips to help you maximise the fuel efficiency of your car to beat petrol price rises
1. WATCH YOUR WEIGHT
Extra weight means extra fuel, so if you know you won’t need a certain set of tools for a particular job, for example, leave them at home.
2. KEEP YOUR CAR SERVICED
Get your vehicle serviced regularly for best efficiency and always use the right specification of engine oil. You should also check your tyre pressures regularly and before long journeys – under-inflated tyres can cause you to use up to 2% more fuel.
3. DON’T HAVE A LEAD FOOT
The harder you accelerate, the more fuel you consume. To maximise your fuel efficiency, imagine that there’s an egg under your pedal and an open cup of coffee on your dashboard – you don’t want to break the shell or spill the drink!
4. CHANGE GEAR EARLY
Don’t labour your vehicle’s engine by holding on to one gear for too long. Instead, try changing up at an engine speed of around 2,000 rpm (diesel) or 2,500 (petrol). Since 2014, new vehicle models have been fitted with a fear shift indicator to encourage use of the most efficient gear, so keep an eye on that too.
5. KEEP A CONSTANT SPEED
Unintentional dips in speed and sudden bursts of acceleration to keep pace take a toll on your tank – and your wallet. Consider using cruise control for highway driving, and where traffic patterns permit, allow your speed to drop when you travel uphill, then regain momentum as you roll downhill.
6. AVOID STOPPING AND STARTING
Stopping then starting again uses a significant amount more fuel than rolling along at a constant, low speed, so try slowing extra early when approaching traffic lights or a queue and you might not have to stop completely.
7. TURN OFF THE AC
At low speeds, air-con can increases fuel consumption by as much as 20%, so try opening the windows when you’re cruising around town. At higher speeds, on the motorway for instance, the effect of air con on your fuel consumption isn’t as noticeable. Don’t leave it on all the time, but running it at least once a week will help to keep the system in good condition.
8. WATCH YOUR SPEED
Going faster uses more fuel. For example, driving at 70mph uses up to 9% more than at 60mph, and up to 15% more than at 50mph!
9. REMEMBER AERODYNAMICS
Wind resistance increases fuel consumption, so try to keep windows closed at high speeds and remove roof racks and boxes when not in use.
10. DRIVE A MANUAL
According to the AA, automatics can use 10 per cent to 15 per cent more fuel than manuals.