London Daily

Focus on the big picture.
Thursday, Jul 10, 2025

Petrol and diesel prices reach new record high

Petrol and diesel prices reach new record high

Fuel prices have hit a new record high at the pump across the UK, tightening the squeeze on UK consumers, the motoring organisation the AA has said.

Over the weekend petrol reached 148.02p a litre, while diesel hit a new record high of 151.57p a litre last Thursday.

Fuel previously hit a record in November, before wholesale and retail prices fell back.

"The cost of living crisis has been ratcheted up yet another notch," said Luke Bosdet of the AA.

The RAC's fuel spokesman Simon Williams said the price of filling a 55-litre family car was now an "eye-watering" £81.41.


"With the oil price teetering on the brink of $100 a barrel and retailers keen to pass on the increase in wholesale fuel quickly, new records could now be set on a daily basis in the coming weeks," he said.

Fuel prices at the pump are driven largely by the wholesale price of energy which has shot up due to tensions over whether Russia will invade Ukraine.

On Monday, oil prices hit their highest level since 2014, reaching $95.56 a barrel.

If the situation in Ukraine deteriorates, oil and gas supplies from Russia to Europe may be interrupted, pushing up wholesale prices further.

The supply of oil and gas has already struggled to keep up with growing demand as the global economy picked up in recent months as Covid restrictions eased.

The RAC's Mr Williams said: "On a positive note, retailer margins - which were the reason drivers paid overly high prices in December and January - have now returned to more normal levels of around 7p a litre."

He said the big four supermarkets, which dominate fuel sales, should "play fair" with drivers by keeping their profit margins low.

Day-to-day prices for food, household bills and other items such as used cars, have risen sharply in recent months, in part due to rising energy prices.

The Petrol Retailers' Association (PRA), which represents independent retailers, said it would continue to ensure that the price of fuel was "as competitive as possible".

But tensions between Russia and Ukraine, as well as other key factors such as tightness in the oil market and the dollar-sterling exchange rate, were likely to cause further volatility in the oil price, said Gordon Balmer, PRA's executive director.

Inflation


UK inflation is now at a 30-year high of 5.4%. New inflation figures for January will be released by the Office for National Statistics on Wednesday.

Mr Bosdet said the AA had surveyed 15,000 of its members after prices spiked at the end of last year and found higher fuel prices were leading 43% of them to cut back on the amount they used their car as well as other areas of spending.

Mike Johnson at the energy consultancy Portland Analytics said what happens to energy prices next depended both on the situation in Ukraine and whether the Organisation of Petrol Exporting Countries (Opec) was able to boost supply.

"Opec and its allies have struggled to increase production in line with their output targets due to a combination of production outages and technical issues, whilst demand continues to rise," he said.

While oil producing nations had agreed to increase production by 400,000 barrels per day in February Mr Johnson said it seemed unlikely that target would be met.

Newsletter

Related Articles

0:00
0:00
Close
Severe Heatwave Claims 2,300 Lives Across Europe
NVIDIA Achieves Historic Milestone as First Company Valued at $4 Trillion
Declining Beer Consumption Signals Cultural Shift in Germany
Linda Yaccarino Steps Down as CEO of X After Two Years
US Imposes New Tariffs on Brazilian Exports Amid Political Tensions
Azerbaijan and Armenia are on the brink of a historic peace deal.
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Weinstein Victim’s Lawyer Says MeToo Movement Still Strong
U.S. Enacts Sweeping Tax and Spending Legislation Amid Trade Policy Shifts
Football Mourns as Diogo Jota and Brother André Silva Laid to Rest in Portugal
Labour Expected to Withdraw Support for Special Needs Funding Model
Leaked Audio Reveals Tory Aide Defending DEI Record
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
London Stock Exchange Faces Historic Low in Initial Public Offerings
A new online platform has emerged in the United Kingdom, specifically targeting Muslim men seeking virgin brides
Trump Celebrates Independence Day with B-2 Flyover and Signs Controversial Legislation
Boris Johnson Urges Conservatives to Ignore Farage
SNP Ordered to Update Single-Sex Space Guidance Within Days
Starmer Set to Reject Calls for Wealth Taxes
Stolen Century-Old Rolls-Royce Recovered After Hotel Theft
Macron Presses Starmer to Recognise Palestinian State
Labour Delayed Palestine Action Ban Over Riot Concerns
Swinney’s Tax Comments ‘Offensive to Scots’, Say Tories
High Street Retailers to Enforce Bans on Serial Shoplifters
Music Banned by Henry VIII to Be Performed After 500 Years
Steve Coogan Says Working Class Is Being ‘Ethnically Cleansed’
Home Office Admits Uncertainty Over Visa Overstayer Numbers
JD Vance Questions Mandelson Over Reform Party’s Rising Popularity
Macron to Receive Windsor Carriage Ride in Royal Gesture
Labour Accused of ‘Hammering’ Scots During First Year in Power
BBC Head of Music Stood Down Amid Bob Vylan Controversy
Corbyn Eyes Hard-Left Challenge to Starmer’s Leadership
London Tube Trains Suspended After Major Fire Erupts Nearby
Richard Kemp: I Felt Safer in Israel Under Attack Than in the UK
Cyclist Says Police Cited Human Rights Act for Riding No-Handed
China’s Central Bank Consults European Peers on Low-Rate Strategies
AI Raises Alarms Over Long-Term Job Security
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Musk Battles to Protect Tesla Amid Trump Policy Threats
Air France-KLM Acquires Majority Stake in Scandinavian Airlines
UK Educators Sound Alarm on Declining Child Literacy
Shein Fined €40 Million in France Over Misleading Discounts
Brazil’s Lula Visits Kirchner During Argentina House Arrest
Trump Scores Legislative Win as House Passes Tax Reform Bill
Keir Starmer Faces Criticism After Rocky First Year in Power
DJI Launches Heavy-Duty Coaxial Quadcopter with 80 kg Lift Capacity
U.S. Senate Approves Major Legislation Dubbed the 'Big Beautiful Bill'
Largest Healthcare Fraud Takedown in U.S. History Announced by DOJ
×