The average cost of filling up a car with petrol is expected to reach £100
According to the RAC, the cost of filling a family car with petrol is anticipated to reach £100 as wholesale fuel prices continue to climb.
It comes after the price of gasoline jumped more than 2p per litre on Tuesday, the largest daily increase in 17 years.
The war in Ukraine has pushed up fuel prices, as have efforts to lessen Europe’s reliance on Russian energy.
There are also fears that a recent reduction in gasoline duty is not being passed on to consumers by gas stations.
On Wednesday, rival motoring group the AA accused the RAC of exacerbating the crisis by “speculating” that prices could soon reach £2 per litre.
Retailers base their rates on the wholesale cost of gasoline and diesel, but because of the time it takes for fuel to reach forecourts, there is normally a two-week lag for pump prices to reflect any changes in wholesale costs.
However, according to RAC fuel data, Asda increased its average petrol price by over 5p per litre in a single day this week, which Mr Williams described as “unheard of.”
According to the price comparison website PetrolPrices, some UK forecourts are already selling petrol for more than £2 per litre.
The administration has ruled out decreasing VAT so far, claiming that any revenue gains from higher fuel costs will be more than offset by lower consumer expenditure and VAT on other commodities.
Instead, in March, it offered a 5p per litre reduction in fuel duty to help motorists save money, however, ministers and motoring organisations have expressed worries that not all shops are passing the reduction on.
The government was “continue to look at all available possibilities” on Wednesday, according to the prime minister’s official spokesman, and “transparency may have an essential role to play” in resolving the matter.
If the Competition and Markets Authority (CMA) finds enough proof that the 5p gasoline duty drop has not been passed on to drivers, it will initiate an inquiry that might result in fines for violating merchants.