Price of UK petrol makes biggest daily jump in 17 years

theguardian.com:

The price of petrol at UK forecourts has made its biggest daily jump in 17 years, as the cost of filling a family car with the fuel threatens to exceed £100 for the first time.

A litre of petrol cost an average of 180.73p on Tuesday, according to the data firm Experian Catalist – up an astonishing 2.23p compared with the previous day.

A similar increase on Wednesday would break the £100 barrier for the average cost of filling a tank for a 55-litre family car.

Some forecourts are already selling petrol above £2 a litre, including a BP garage on the A1 near Sunderland, which is charging 202.9p.

Average diesel prices are also at a record high, they hit 186.6p on Tuesday, up 1.4p from Monday. The increased price of diesel has a significant impact on the wider economy because businesses typically use the fuel to fill vans and lorries.

The increase in prices has been blamed on increased demand for fuel across the world, including from China and the US as Covid restrictions are loosened.

A squeeze on capacity at oil refineries has also kept pump prices high while oil has fallen back from peaks seen at the start of the war in Ukraine.

The RAC this week urged the government to make a “radical intervention” to cushion the cost at the pumps for consumers.

The chancellor, Rishi Sunak, cut fuel duty by 5p a litre in his spring statement in March. However, fuel retailers have been accused of not passing on the cut to consumers.

The business secretary, Kwasi Kwarteng, last month wrote to forecourt retailers “to remind them of their responsibilities” to pass on tax cuts to motorists.

He said it was “unacceptable that different locations even within the same retail chain have widely different prices”.

He has asked the Competition and Markets