Cost-of-Living: Brits paid an extra 6p per litre of fuel last year!

Did you know that a new wave of regulations is set to transform the way consumers interact with one of their most essential needs – fuel.

In a bid to help the public amidst the cost-of-living-crisis, the government’s new regulation forces supermarkets and other fuel retailers to publish live prices to stop them from overcharging.

And it’s about time too – according to RAC’s up to date Fuel Watch site, in August drivers were hit by one of the biggest fuel price hikes in decades. Petrol went up 6.68p a litre and diesel by 8p, adding around £4 to a tank.

The average price of unleaded finished August at 152.25p – up from 145.57p at the beginning of the month. Diesel went up from 146.36p to 154.37p.Compare this to August 2021, where petrol cost 135.77p.

Fuel is an essential expenditure for many of us. As such, the introduction of this legislation has the potential to make a huge impact on how much you pay at the pump, especially as it comes after it was discovered that the British public were paying too much. Wholesale fuel prices have actually dropped since they reached record highs and yet the prices that consumers have been paying has not dropped accordingly.

An investigation by the Competition and Markets Authority found that the savings were not being passed on to the customer and that competition within the industry was ‘not working as well as it should be’, for example, “Morrisons’ targeted fuel margins for 2023 had doubled.”

The results of these findings have led to some potentially good news for consumers: the creation of a brand new governmental body, the ‘fuel monitor oversight body’! This is a momentous change for road users and the results of it, be they positive or negative, remains to be seen.

However, could the higher fuel rises have an unexpected, positive impact? As irksome as the increases are, it can’t be denied that many have found alternative, more ‘eco-friendly’, ways to travel. As prices rise across the board, there has been an increased take up on carpooling, public transportation, investing in more fuel-efficient vehicles, cycling or walking. Could this one day reduce the number of claims as well? The results remain to be seen.

Talk to us

We can’t do anything about the cost of fuel, but we may be able to help reduce your car insurance premiums! Don’t forget, reducing your mileage could reduce your insurance. If this, or anything else has changed, you can always get in touch with your local branch, either via telephone or in-person, for advice.

Sources: BBC, ITV, RAC, Imperial, Ox, Which?