Treasury nets ‘£46 in tax’ from average full tank as fuel prices set more records

There has been no let up in the pace of fuel price increases, with pump costs hitting new record levels over the weekend, according to the latest figures.

Data from Experian Catalist showed the average cost of a litre of unleaded hit 185.04p on Sunday while diesel – the engine of the UK economy – rose to 190.92p.

The records were revealed shortly before the business secretary confirmed that the Competition and Markets Authority had agreed to his request for an “urgent review” of the fuel market following concern about the pace of price rises and whether the Treasury’s 5p-a-litre duty cut in March had been fully passed on.

The RAC, which has previously called for further action on fuel duty and VAT to curb rising bills, said the latest pump prices meant that the Treasury was now netting about £46 in tax from the average full tank amid the wider cost of living crisis.

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The data showed that diesel actually reached a record high above 191p on Saturday before declining slightly the following day.

Motoring organisations said the latest figures meant that petrol had risen by 7.16p during the course of last week.

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Diesel saw a hike of 5.91p.

However Luke Bosdet, the AA’s fuel price spokesman, said there was hope of a stabilisation for prices ahead following the surge of the past couple of weeks as the wholesale price of petrol was currently down on its peak achieved earlier this month.

“Petrol price rises should be grinding to a halt, at least temporarily, by the end of the week”, he noted.

“There may still be some forecourts yet to pass on the recent surge in costs.

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Why is fuel cheaper in Northern Ireland?

“If they continue to go up substantially afterwards, we will be intrigued to hear what excuses the fuel trade has this time.

“If prices keep going up, they will give the government further justification in its call to the Competition and Markets Authority for an investigation.

“Diesel’s relentless surge in costs remains a nightmare, with its knock-on impact for the cost of delivery of goods and services, and therefore inflation.”