From: Record UK fuel prices imminent - Yahoo! CarsPetrol prices could hit a record 124p per litre in the coming weeks, the RAC has warned. The record average price in the UK is currently 121.6p per litre, which happened in May 2010.
With the UK average currently at 118p per litre, and up to 121p in London, we're already hovering dangerously close to the record. October's 1p per litre fuel duty rise plus a recent sharp increase in oil prices have been blamed for the current high.
Sadly, the only way is up for prices over the coming weeks. The situation has been exacerbated by a blockade of French oil refineries in protest against changes to the country's pension law. The knock-on effect is an increase in European wholesale prices as France is forced to import extra fuel.
The UK is about to see a further fuel duty rise - 0.76p per litre on January 1 - as well as the planned VAT increase, from 17.5- to 20 percent. Increased demand for oil during the cold winter months could push prices up even more.
It all adds up to a bleak winter for motorists. An increase from the current price of 118p per litre to 124p would add £3 or so to the price of filling up a small family car. Already, around £5 per tank has been added since the turn of the year. Soon, even the smallest cars could cost well over £60 to fill up.
The RAC's Adrian Tink said: "Certainly the next increase in fuel duty and the increase in VAT will ensure it's not a particularly Happy New Year for the motorist."
There is some hope, though: "We have, in the past, in the build up to Christmas, seen the supermarkets competing with each other on price, and of course factors such as a reduction in the price of oil or a strengthening of the pound can also have a dramatic impact in a short space of time," said Tink.
Oh dear.. glad I'm picking up my CRZ on Friday, my Mercedes isn't exactly the most fuel efficient car.