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Record Breaking UK Fuel Prices

If there’s one thing almost guaranteed to enrage UK drivers of new and used cars, it’s the soaring cost of petrol and diesel fuel, with prices now reaching £2.00 per litre, not to mention what motorway service stations are prepared to ask for a litre of the amber liquid!

UK Fuel Prices Rising

With the AA dubbing our record-breaking fuel prices a “milestone of misery”, it’s no surprise the motor trade industry are busy trying to figure out how all this might affect the sale of new and used vehicles during the summer, traditionally a boom time for motor dealers.

Factor in the cost-of-living crisis and some drivers are now leaving their cars parked in the garage as much as possible. The knock-on effect is causing insurance brokers to speculate about how this may impact private and motor trade insurance premiums and policy sales.

After all, motoring mileage is a risk factor that affects the price of a motor insurance policy, so mileage reductions and fewer accidents, possibly claims could mean cheaper motor insurance policies.

Why is fuel always cheaper in supermarkets than at independent filling stations?
Everyone must buy food, so why not knock a penny or two off our pump prices to get more drivers coming along to ‘fill up and shop’?

That’s supermarket marketing strategy in a nutshell. It’s not rocket science, but it works. Unfortunately, few independents can offer enough choice of food and other staples, other than selling the odd chocolate bar, they can’t really compete.

In this environment supermarkets will always win. However, watch out for other in-store prices, the big players can be experts when it comes to 2p off petrol and 4p back on the beans!

Furthermore, as the AA fuel price spokesman, Luke Bosdet remarked: “It is particularly galling when supermarkets of the same brand are charging significantly more at one superstore compared to another not that far away.”

Why is motorway service station fuel so expensive?
Motorists could be forgiven for thinking highwaymen didn’t really die out, they simply invested in motorway services instead! In their defence, motorway service managers argue they are open 24/7, provide more services than an average forecourt and pay high landlord rents on their sites.

Whilst that may seem plausible enough, many still have a lingering suspicion motorist are being fleeced. Motorway fuel stations in more isolated areas often charge the highest prices of all, the excuse being that transport and supply costs are higher.

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But this doesn’t wash at all with the RAC’s fuel spokesman, Simon Williams, who says: “We can see no reason why motorway fuel should be so much more expensive. In fact, arguably it is much easier from a delivery point of view than it is getting fuel to urban filling stations.”

With fuel prices forecast to remain high for the foreseeable future, it will be interesting to see how retailers respond to the awkward questions heading their way. With so many home budgets stretched beyond breaking point, fuel providers face a further challenge as they push prices up and up, as drivers will cut back their mileage in response, so who’s actually going to buy all this ‘Texas Tea’?