Petrol prices 'headed for record high'
Wednesday, 17 March 2010 10:38
By myfinances.co.uk staff
Petrol prices could be pushed to a record high of £1.20 per litre in the next few weeks, even before increased fuel duty and VAT is added to the mix, the AA has warned.
The motoring organisation, which had around 15 million members, said that petrol had remained steady at around £1.12 per litre in late January and February, as European wholesale prices hovered around $680 (£447) per tonne.
However, by the end of last week, wholesale costs had climbed 16.9% to $795, which threatens to now push prices on the forecourt above the previous record set in July 2008.
The AA said that on Sunday (March 14th), average petrol prices in the UK stood at 115.93 pence per litre. This could add around £4 to the cost of filling up compared to late January and February.
Edmund King, the organisation's president, warned that the impact of higher fuel costs on motorists could be much more severe than it was in July 2008 because the UK is "barely out of recession".
"If families, drivers on fixed incomes and those on low pay were unable to cope with record prices then, they are even less likely now," he commented.
According to the Office for National Statistics, transport is the largest single category for household spending in the UK, accounting for an average of £63.40 per week in 2008.
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