Pump prices hit another high ahead of the Spring Statement - RAC figures and reaction

RAC fuel spokesman Simon Williams said: “Average fuel prices reached new record highs on Tuesday with petrol sadly topping £1.67 a litre and diesel now poised to exceed £1.80 for the first time ever. The cost of filling an average 55-litre family car with petrol is now more than £92 and nearly £99 for diesel, making the £100 tank inevitable.

“Unfortunately, Monday’s break from daily rising prices was far too short-lived, especially as wholesale petrol costs are down and should be being passed on to drivers at the pumps. The biggest retailers are once again letting drivers down by not charging lower prices while they can. Instead, they appear to be hedging their bets to protect themselves from future increased wholesale costs.

“This is why we fear a fuel duty cut by the Chancellor in the Spring Statement could be swallowed up by retailers to the detriment of hard-pressed drivers. A VAT cut would be a far more flexible and powerful way of easing the pain for drivers. A 5p fuel duty cut would cost the Chancellor around £2.3bn over a year – a figure far surpassed by the increased VAT take, even after a duty cut which is probably why he appears to favour this option.”

STATEMENT ENDS