UK fuel prices likely to stay high in 2022 amidst ‘global energy storm’

Fuel crisis: French TV panel discuss UK problems post-Brexit

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Experts monitoring the cost of gas, electricity and oil across the world’s markets have announced they don’t expect any relief for UK drivers in the next year, blaming the consistent cost of crude oil and a lack of supply from producers.

2021 saw record costs for both petrol and diesel in the UK with diesel hitting prices of over £1.50 per litre for the first time in history.

That came just days after petrol’s record price of £1.46 per litre.

And with the global cost of energy having increased by 35 percent, there seems no respite ahead according to analysts at the major French bank Société Générale.

They don’t expect any significant reduction in oil prices in the next 12 months.

They said: “In the last few months a global energy storm has broken out and oil has not been able to escape the turbulence.

“Gas, coal and electricity are in short supply.

“We now assume that Brent prices will be around $80 per barrel in the first quarter of 2022 and averaging $75 per barrel over the course of 2022.”

Experts also believe a reasonably quick lifting of lockdowns put in place in some countries due to the Omicron variant could lead to more demand for oil as people return to being more mobile, seeing producers raise the cost to more than $90 per barrel.

Car owners in the UK currently pay 77p per litre more than in the USA, and 94p more per litre than drivers in Russia.

The cost of filling up at the forecourt in the UK is the sixth highest in the world, with only Denmark, Greece, Italy, Holland and Norway paying more.

Research into prices around the world by FairFuelUK showed retailers are making 25p profit on petrol and 30p from diesel when compared to wholesale costs.

Howard Cox, founder of FairFuelUK, has repeatedly called on the Government to introduce a petrol pricing watchdog for the benefit of drivers.

He said: “Boris and Rishi’s head in the sand economic management of the fuel supply chain’s unchecked opportunistic profiteering, beggars belief.

“The huge amount of VAT being generated by the eye watering pump prices, is great for the Treasury, but these greedy rip off prices are crippling low income families, small business and are accelerating the rise in inflation.

“It is in the Prime Minister and Chancellor’s hands to order a CMA enquiry, introduce PumpWatch, stimulate consumer spending and help disillusioned voters.

“Why are they ignoring this popular fiscal cry from the majority of the public and businesses?”

The plea comes on the back of fury at the inefficiency and cost of E10 fuel that was introduced as a standard in the UK back in September.

The Government had stated that the new petrol would not cost more and any loss in fuel efficiency would be nominal – around one percent.

However consumers soon began to report real-life drops in fuel economy of around 20 percent.

And mechanics warned that the additional ethanol levels in E10 could have disastrous effects on engines at a later date.

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