Based on the cost of filling a 55-liter tank, the RAC has termed this milestone as a “really gloomy day for drivers.” Along with the AA, it urged the government to intervene, describing as “paltry” a measure taken three months earlier by Chancellor Rishi Sunak.
Businesses will eventually attempt to pass on their increased costs, which is likely to exacerbate the cost of living crisis for motorists and customers.
Simon Williams, the RAC’s spokesperson for fuel, stated: “Today is a genuinely gloomy day for motorists, as the price of a gallon of gasoline has now surpassed the depressingly depressing £100 mark (£100.27p). A full tank of diesel now costs £103.43.
“With average costs as high as 182.31p per liter of unleaded and 188.05p per liter of diesel, inflationary pressure will almost likely increase, which is terrible news for everyone.”
To shield motorists from escalating expenses, Chancellor Rishi Sunak reduced fuel duty by 5p three months ago. However, the RAC has since deemed this reduction to be insufficient.
It was stated that wholesale gasoline prices have increased fivefold since then.
Mr. Williams encouraged the government to further reduce the charge or temporarily decrease the VAT.
He stated that the government collects approximately 30p in VAT per liter, up from 25p before the Russian invasion of Ukraine, in addition to 53p in gasoline charge per liter.
The AA reiterated his requests, pushing the government to immediately drop fuel duty by 10p per liter and to implement a fuel price stabilizer that would reduce fuel duty when prices rise and increase it when prices fall.
Edmund King, the organization’s president, stated: “Enough is sufficient. The government must act immediately to reduce record fuel costs, which are destroying the lives of low-income individuals, rural communities, and enterprises.”
He added: “A fuel price stabilizer is a reasonable way for the Treasury to help regulate pump prices, but they must also increase fuel price transparency to prevent daily pump rip-offs.
“The £100 tank is unsustainable in light of the rising cost of living, thus the underlying causes must be addressed immediately.”
In recent months, prices at the pump have increased significantly due to the spiraling price of oil.
During the earliest days of the epidemic, the price of crude oil plunged due to a decline in demand brought on by a rise in the number of people staying at home.
After the reopening of major economies, prices grew gradually until February, when Russia, one of the major oil producers, invaded Ukraine, causing Brent crude prices to reach approximately $130 per barrel.
Concerns regarding oil availability coincide with the return to the business of China’s enormous industrial sector following the loosening of pandemic restrictions, which will raise demand.
