The latest figures from RAC Fuel Watch show petrol and diesel prices increased by more in March 2022 than in any previous month on record.
The staggering highs came despite the Chancellor’s announcement of a 5p per litre cut in fuel duty during the Spring Statement.
Drivers are now paying almost £22 more to fill the tank of an average petrol car than a year ago, with diesel owners out of pocket by close to £28 per tank.
Fuel reaches record highs
Prices for petrol peaked at 167.3p per litre on 22 March, with an average cost of 163.3p seen throughout the month. An increase of 11.62p was the largest single-month jump ever recorded by the RAC.
Diesel drivers have suffered even more, with the average price of a litre rising by 22.06p. A high of 179.9p was seen on 23 March, with diesel ending the month at 177.29p per litre.
This means petrol drivers are paying some 32 percent more than a year ago. Diesel owners are having to spend an astonishing 40 percent more.
RAC pushes for VAT cut
The RAC says the Chancellor’s 5p per litre cut in duty failed to benefit motorists in full. Applied to the wholesale cost of fuel, the cut in duty was applied as market prices were still increasing. As a result, the cut merely tempered a further rise in pump costs.
RAC fuel spokesman Simon Williams said: “March 2022 will go down in the history books as one of the worst months ever when it comes to pump prices – over the 22 years we have been monitoring pump prices as part of our Fuel Watch initiative we’ve never witnessed such extreme rises in prices over such a short period. To describe the current situation facing drivers at the forecourt as ‘bleak’ is therefore something of an understatement.
“The fact pump prices have fallen so little reflects the fact that the cost to retailers of buying fuel had been going up ahead of the Spring Statement. Had the Chancellor temporarily cut VAT rather than fuel duty on fuel, as we asked him to do, the impact on pump prices would have been immediate, with drivers benefiting straight away. Cutting VAT would also have gone some way towards shielding drivers from future increases – something a cut in duty just can’t do.”
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