Why filling up your car could soon cost £100.
The cost of petrol and diesel in the UK could reach £2 a litre this summer, the RAC says.
The motoring organisation warns it could soon cost more than £100 to fill an average car with petrol. A tank of diesel already costs almost £102.The cost of fuel has increased because the price for crude oil, which is used to make petrol and diesel, has gone up. Crude oil was cheaper at the beginning of the Covid pandemic, because many businesses temporarily closed and demand for energy collapsed.As life returned to normal the demand for energy increased. But suppliers have struggled to keep up and prices have risen.
Another problem is that the oil used to make petrol is paid for in US dollars. The pound is weak against the dollar at the moment, which makes fuel even more expensive.But petrol retailers don't always pass on all of the reductions to their customers immediately, or in full.and taking extra profits. But the Petrol Retailers Association said customers had bought 15% less fuel in 2021 as a result of Covid. It said retailers had to make higher profits on each litre sold to cover costs.Fuel prices were already rising before the war in Ukraine started in March - and the fallout from Russia's invasion has made things worse.