Average UK Diesel price more than £1.50 a litre for the first time ever.
Data published by the AA this morning (15 November 2021) has revealed that the average cost of a litre of diesel is now more than £1.50 for the first time ever. The average peaked at an eye-watering 150.50p a litre. Following on from the fuel crisis in the UK in recent weeks, this is another difficulty private car owners and businesses are facing. This increase has topped the previous record of 147.94p which was set in October 2012.
Experts warn that the increases are not over, and we could see the price of diesel and petrol continuing to rise as we approach Christmas.
Price increase for goods and services
As the price of fuel increases, it is highly likely that consumers will bear the brunt of the price increases as provides and suppliers of goods and services pass the increased costs onto their customers.
Luke Bodset is the AA's fuel price spokesman. He stated: "As the workhorse fuel for deliveries and craftspeople who drive to customers, it will likely usher in even higher costs for goods and services. Many bigger businesses have insulated themselves against higher fuel costs with a system of surcharges on deliveries."
Many people may be worried on the run up to Christmas, with the costs of visiting loved ones increasing and the costs of goods and services now looking uncertain.
Following the COP26, the push towards electric and hybrid vehicles, combined with the fuel crisis recently, many people are now considering opting for an EV or hybrid vehicle.
Why are we seeing rising fuel prices?
Some argue that the UK is in a perfect storm, with many factors contributing to the rise of fuel prices at the pumps.
Bodset also stated that the rise in fuel prices can be put down to surges in oil prices, paired with other factors, such as the strength of the pound decreasing and further price rises for biofuel. Other experts have also quoted Brexit as a contributor to cost of fuel, as well as the shortages in fuel delivery drivers.
This is not an issue that is exclusive to the UK, however; there is currently a global energy crisis, with many countries through Europe and the rest of the world experiencing shortages in fuel. These shortages are met with higher demands. Greater demand and less supply drives prices up.
What can you do to reduce your fuel consumption?
There are a handful of things that you can do to improve your fuel economy. From adjusting your driving style, lightening the load of your car and switching to eco mode, if you have it, when driving are all things that can improve your miles to gallon.