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AA issue urgent warning for drivers as petrol and diesel prices begin to rise again

Last Updated: February 6, 2023 | India, Delhi
AA issue urgent warning for drivers as petrol and diesel prices begin to rise again

Following an increase in the price of oil in January, gas and diesel prices are rising once more across the UK, according to new AA statistics.After falling to 148.35p per litre on Monday, the average price of gasoline increased to 148.77p yesterday (January 23).Diesel prices fell to 170.29p per litre on Wednesday and Thursday of last week before rising to 170.36p per litre yesterday.The top costs for gasoline and diesel in July were 191.53 pence per litre and 199.07 pence, respectively; both of these prices are much less than those high points.In contrast, a year ago, the price of gasoline was 146.53 cents per litre and the price of diesel was 149.91 cents per litre.At the beginning of January, the price of oil had fallen below $78 (£63.34), but by last week, it was priced between $86 (£69.84) and $88 (£71.46). The wholesale price of road fuel increased as a result of the surge. The price of gasoline peaked in December at 49.2p per litre and was 62.7p at the end of the previous week.Diesel hit 71.9 pence a litre on Friday, up from 66.4 pence at about the same time in December (January 27).The wholesale price of oil has just dropped back, but not by enough to stop further rises in pump costs.As AA spokeswoman on gasoline prices Luke Bosdet noted, the price increases have so far been gradual."Drivers feared that a comeback in gasoline prices would ultimately happen," the author said, "after a decline of close to 43 cents per litre since the summer record."Average pump prices have only marginally increased thus far. The average price at the beginning of the Ukraine War (February 24 - 149.67p), when pump prices surged, is just 0.9p lower than the price today.Today, official gasoline usage data were also made available by the HMRC. According to them, UK gasoline usage is still at about 1.35 billion litres per month, down from slightly over 1.4 billion litres before the epidemic.Gasoline consumption in the UK increased in 2019 from 16.116 billion litres to 16.851 billion litres.

Similarly, diesel usage dropped from 30.035 billion litres in 2019 to 29.144 billion litres in 2018.Fuel usage in 2020 dropped to 13.097 billion litres for gasoline and 25.029 billion litres for diesel.The average price of gasoline would drop below the 167.0p per litre average on the day of the fuel tax decrease, but only because of the 5p reduction (6p with VAT), according to Mr. Bosdet.The importance of gasoline and diesel as vital expenses in the cost of living problem is further shown by today's HMRC numbers.Demand is still somewhat lower than it was prior to the outbreak.When Chancellor Jeremy Hunt decides whether to prolong the 5p per litre drop, adjustments to fuel duty will be made near the end of March.In its Economic and Fiscal Outlook report, the Office for Budget Responsibility mentioned a probable 23 percent hike in gasoline duty.It was claimed that the adjustments will be made with the spring statement and would increase government revenue by £5.7 billion in 2019.Since January 1, 2011, no government has raised gasoline tax rates in cash terms. This would be a record cash rise.The present rate of gasoline tax, which was reduced from 57.95p per litre to 52.95p per litre in March 2022, would increase to around 65p if the plan were to be implemented.

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