Petrol hits an all time high of £1.20 next stop £1.50?

10345 Comments | Add Comment | Blog entry posted 8th April, 2010

In July 2008 we saw petrol hit a massive 119.7p. Back then, one British Pound would buy you two US Dollars. Today we expect the average price of one litre of Unleaded to have hit £1.20 (if you round it to two decimal places it’s actually already happened but to be precise it was 119.96p yesterday) and today’s figures will be available tomorrow around 12pm.

During the financial crisis the UK has fared a lot worse with our currency weakening so much that today you can only get one and a half US dollars for every pound.

This more than any other factor has caused higher pump prices over the past few years. We have seen fuel duty rises too but the impact of the exchange rate has been the single largest cause of rising pump prices lately.

The second biggest culprit is oil prices and things are looking set to get worse with them starting to rise again and with Brent Crude at around $86 a barrel an 18 month high.

Because the exchange rate is so important, the biggest threat to the price we pay at the pumps in the short term is actually what the financial markets make of the election. If they are worried about a hung parliament or the plans to reduce the deficit then the UK could have its credit rating downgraded.

Were this to happen and the UK to lose its coveted AAA credit rating, then the money we are borrowing as a country will be seen as higher risk and the value of the pound in our pockets could plummet to new lows.

With the price of oil on the rise as well we could even see the prices at the pumps hitting a massive £1.50 this summer!

So we wanted to ask our members how is this affecting your lives? Does it feel worse now compared to July 2008? Are you driving less? Are you getting used to higher prices? Have you lost your job because of rising prices? Please tell us your experiences below.

Replies to Petrol hits an all time high of £1.20 next stop £1.50?

Tricia April 8, 2010

report reply to Tricia

I now cant afford to use my car anymore. Also parking charges have gone up where I work to £4.50 per day so with fuel on top its back to an hour to get to work on bus by instead of half hour in car. Bus pass is £18.50 per week which is cheaper although more time consuming.

Michael Bird April 8, 2010

report reply to Michael Bird

In Spain, the Government set the price of petrol, diesel and gas. Perhaps that is an idea here? Tyhen at least we can vote in a Government that is keen to satisfy motorists.

Paul April 8, 2010

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It will only get worse can see it going to £2.00 ltr in next 18mths whats worse is the goverment no matter what party just use us as a cash cow.

Mark In Oxfordshire April 8, 2010

report reply to Mark In Oxfordshire

I have a company car and get paid per mile, so it doesn't have a massive effect on my pocket. HOWEVER, we are asked to do less miles and only travel if necassary and then have every visit and mileage claim queried. We then in turn lose out on other items, as our budget is paying for fuel instead of them, which then in turn means no pay rises, new company equipment, less urgent items are put on hold etc. It also means that cost of goods that we all buy from small and large companies goes up, as their cost of sale increases.

Ian White April 8, 2010

report reply to Ian White

I can see no reason why petrol/diesel/fuel should be taxed any differently from any other commodity - just have VAT added at the prevailing rate.

In order to recover the 'lost' revenue, that would mean raising VAT to 25% - but what's wrong with that, if it means that everything transported by road becomes cheaper?

The Govt needs to raise an ADDITIONAL £200 BILLION (or cut its expenditure by the same sum) each and every year for a decade if we are to get out of our current financial 'Brown hole'. That would mean abolishing all Defence, NHS and Education expenditure........ and STILL leave a short-fall.

The state of our State finances is so truly appalling that emigration is the only way out.

Alan Wells April 8, 2010

report reply to Alan Wells

There is an email circulating telling us to avoid Esso and BP (same company)then when their sales are hit they will reduce prices and then hopefully other fuel company's will follow!! Makes sense. Alan

Graham Stephenson April 8, 2010

report reply to Graham Stephenson

The government and local councils all want us to use public transport. Great, if you could rely on the buses and trains running to timetable (or even just turning up) and the cost wasn't so astronomical. Would also help if bus services ran to the places I want to get to. I have cut my car journeys down as much as possible, think about how I drive, and still the petrol is costing me a fortune.

Liz April 8, 2010

report reply to Liz

I have to use a car to do the daily 85 mile round trip to work, since there are no public transport routes along the A14. Last week was the first time it cost me more than £50 to fill the tank. My weekly diesel bill is now about £70, compared to the £40 I used to spend 5 years ago. Wish my salary had increased by the same % , but as a public sector worker the government is in control of that too....

V Thorpe April 8, 2010

report reply to V Thorpe

As we are all probably aware that in the UK we are taxed by the present and any future government on litterly everything, although most people who drive cars do not realise the reality of just how much we are taxed and where does all the money actually go, because the uk roads are in an appalling state with more pot holes the size of volcanos, but the major issue is why should this UK government ever more greedy ripping of the drivers through sleath tax unbeknown to a majority of us, but when you sit back and anlaysis the amount of tax we actually pay. We pay tax when we buy a car, we pay tax on the insurance that we need to drive our cars, we pay tax for the pleasure of driving on the clapped out roads with pot holes, then we pay tax a 95% chunk of the petrol we buy is taxed but know one realises just how much when all combined the overall figure is so scarry its enough to make you weep yet we are powerless to do anything about it because we are individuals.

As for the Governments present and future, well all mouth and trousers, of course nothing will ever change and why because petrol is a good little earner, it brings in the needed cash to fund the greedy banks who on the other hand are taxing us to save in their banks.

It makes you want to screem in particular when you compare to other countries where there is nothing like the ripp off we suffer in this country, and the irritating part of all of this is that if we refuse to comply we are put in prision because it is compulsory and illegal to comply so we are enforced by law to pay whether we like it or not.

Petrol and etc will continue rising until it is so high that it will litteraly be unaffordable to a point that only the rich will be able to afford the petrol for their cars and no one else will be able to afford to run or drive a car.

What a sad society that the governments are creating squeezing out the middle classes and killing off the working classes.

So what can we do about it that is the question, protesting falls on deaf ears, every complaint only adds more tax, the cheek of the present and every other government is to not let the poor mug who needs to use their car has no option and not even realise they are being ripped off because the rises as the Mr Darling stated the tax will rise gradually like we are not supposed to notice.

I can foresee petrol rising up to £5.00 a litre and don't forget what a litre is its the same as a 4 pints of mile the amount of milk that you buy in a carton from the supermarket, so what are you getting for your money not a lot which is why we are being ripped off and no one even notices because in the UK we are all so used to being ripped off.

ANYBODY got any ideas on how to stop the rise in petrol apart from making sure the present government being re elected and the others doing more for the motorist but that is unlikely to happen.

Liz Duke April 8, 2010

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The price at the pumps is ridiculous - none of the drops in oil prices were reflected at the pump. The goverment is making it impossible to commute to work when most of us (apart from the lucky few) have to commute to find work. Both the oil companies and the government need to do something about this.

Reg Rigby April 8, 2010

report reply to Reg Rigby

well i got rid of my trusty old rover 75.great car but now too costly to run,,i am a pensioner..so now have no car,,,bloody buses and walking .they say it does me good..but my kids live 45 miles away,,long walk,,no direct bus line,,and i miss my grand kids.
somebody invent a cheap fuel and blow the greedy oil barons away

Steve Dunn April 8, 2010

report reply to Steve Dunn

The sun's shining and as I only work 2 miles from home it's time to hit Freecycle and see if I can find a bicycle. Petrol isn't going to come down in price and my pay isn't going to increase to keep in line with escalating fuel costs. I thought about a pony and trap - but that makes running a gas guzzler look economic!

Tom April 8, 2010

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oil price could be priced in regional currency-so uk would be Euro. Pound gaining slightly better (than dollar) on euro(after big drop though!) at the moment. Think would be lot of issues with this-but could be done. Just replaced car recently - right at last moment realised could not justify the addiotional cost of diesel model over petrol. So feeding the 1.6 petrol all sorts of remedies to get more mpg - Put nitrogen in tyres and keep correctly inflated. Engine treatment redex or stp every 2k miles. fully synthetic oil change such as castrol edge or Mobil 1. When tyres wear out replace with eco tyres ( low rolling resistance) - another 3 - 6% fuel save- such as firestone firehawk tz200. Hope this helps

Roy Haworth April 8, 2010

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I firmly beleive that all goverments of this country want to take us back one hundred years. The M.Ps would keep their cars and claim expenses for travelling but the rest of the country can walk. I am severly disabled and need my car to get anywhere, due to my condition I cannot get in a small car.

Doug April 8, 2010

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As pointed out already, the currency drop isn't the sole issue. The cost of the underlying commodity is only a fraction of what we pay at the pump. Because VAT is one of the taxes applied, the higher the price goes the more the government gets in taxes. Why do we put up with this?

I'm certainly driving less. Productivity associated with transferable labour is down. It's like the government would like me to stay home and stop being part of the economy. It should give back the tax windfall that pours in when prices go up.

If 2/3 of the price is tax we should stop that immediately. AT LEAST the government should only impose FIXED levies per liter instead of sliding taxes that RISE when the cost of oil goes up.

Jill Rayner April 8, 2010

report reply to Jill Rayner

We are all paying the price in so many ways when our income is not increasing and for some people it is even worse as they are being forced to take pay cuts. Food costs are increasing as the cost of fuel impacts on transport companies.
Something must be done to stop the huge price increases on fuel, this includes the oil companies as well as the government.

Daron Driscoll April 8, 2010

report reply to Daron Driscoll

Unfortunately driving is part of most peoples daily life and almost impossible to find a suitable substitute. The cost of fuel over the past few years has become a serious issue for most households whilst families try to juggle the rising costs of living against, in most cases the frozen wage rises.
I have asked myself why the British public stand by and accept the fuel increases but still moan about the cost to friends, family or collegues. It's certainly time that the British public address their thoughts to the relevant bodies by turning their weekly moans into major public issues.
Sadly I feel that the british public are in too much of a daily rush for my opinions to become reality. From a disgruntled car owner !!

Tony Goose April 8, 2010

report reply to Tony Goose

In this current climate fuel prices effect everything, the food on your plate to the fuel you buy. Apart from the fact that Fuel now takes up significantly more of my wages it is unfortunately a necessary evil for alot of us and I have to go to work. What does amaze me is in a time when recovery should be the primary goal of the government they are still adding their fuel tax increases, a reduction of which would see the prices of everything fall and so getting people spending again. We are long overdue action by the people, this government is supposed to serve, but maybe we should be concentrating on boycotting one or two suppliers like BP and Esso, just buy somewhere else. The problem with the fuel protests before was getting petrol to get to work, and if i cant get to work its gonna cost me more than a few extra quid in my tank

John Knight April 8, 2010

report reply to John Knight

J Blog does actually have a point, I have been on the "list" for ages and still no card or actual action. Anyway, if we look back a few years the Government promised (hollow obviously) to ensure there was always at least a 2.5p gap between Petrol & Diesel, this has been gone for ages.

I have also seen petrol stations increase and drop fuel costs by a penny virtually at their whim. I have also noticed some stations RAISE the cost one Pence on a Sunday afternoon (to cash in on those filling up for the week ahead no doubt) then drop it one pence Monday morning, so I support Ron's comment about somebody making a fortune at our expense, although not buying for a day I doubt would cause those responsible any grief as we would all fil up day before or after so most likely end up queuing to get it.

James Isbell April 8, 2010

report reply to James Isbell

The big trouble is there isn't any good alternative to Petrol/Diesel cars.
Electric just don't have a good enough range, let alone just how bad the batteries are that they use! And how expensive would they be to replace once they do die?

Buses and Trains, really expensive (were I live) and the trains aren't exactly reliable! Delays, delays, delays.

Come on Hydrogen fuel cell...

Paul Gardner April 8, 2010

report reply to Paul Gardner

J Blog (Commenter #8) has an interesting point, this site has been running for some time now and any traffic it receives is generating income, even if modest.

So, what has this site achieved other than lining the pockets of it's owners? This is the first blog post since Mid 2009 and petrol prices have been rapidly rising month to month, so what's different now, why start blogging again?

What are your plans to mobilise the petrol paying public so we can make a difference? This post certainly doesn't seem to offer any glimmer of hope, it just canvasses for more traffic to increase your advertising revenue!

The nation is in a state of apathy towards politics because no matter what we do whoever is in government has us over a barrel (tedious pun intended) and knows that within a few days we will be back at the forecourts due to a need to get back to work.

This is also the reason so many people can;t be bothered to vote, what difference does it really make? So very very sad, but true

Janet Gorin April 8, 2010

report reply to Janet Gorin

I live in a semi rural area (no choice) where transport is fairly limited and I have no option but to use my car for work, shopping, appointments etc. My weekly petrol costs have got to the point where I am seriously concerned. My salary is not large and the increasing petrol prices are eating into my salary at an alarming rate.

Mandy Webber April 8, 2010

report reply to Mandy Webber

I have to drive to work and back every day as there is no other way for me to get to work. I am noticing the cost of filling my car up is increasing weekly. Fuel is already at 119.9 per litre in my area and I have to contend with the roadworks on the M1 everyday. This takes more of my fuel due to the congestion it creates. It's a shame that wages do not increase in line with fuel prices - we would all be millionaires by now!

Gra April 8, 2010

report reply to Gra

It's foolish to say it's the level of the pound against the dollar which is the main factor in the price of petrol - yes it plays a part, but the government have most say in how much is charged for a litre of petrol. If Labour were to halve the amount of tax they charge per litre the cost would drop to around 80p per litre which is a fair and reasonable sum!

As far as I'm concerned the majority of blame lies at the door of Number 10 (or 11).

Steven Richmond April 8, 2010

report reply to Steven Richmond

I don't like to complain but as a disabled driver the car is my only way to get out into the world. But I just simply can't afford to drive about for pleasure anymore just shopping. combining the cost of petrol gas and electricity it is an outrage in this ripoff Nation.

Keir Hermsen April 8, 2010

report reply to Keir Hermsen

The price has risen so much now that people are using their car less. The petrol retailers and government will be taking less money overall as there is less demand. People are driving slower now and less frequently as the price is exhorbitant. If the price were to go up any more then I think it will have a huge affect on profits.

Steven Simpson April 8, 2010

report reply to Steven Simpson

Totally agree with a fuel protests, bring every major city and port to a halt as this is now ridiculous

Lizzie Justice April 8, 2010

report reply to Lizzie Justice

How many businesses do not rely on transport costs to price their goods? I see the interest rate has been pinned down - and I am astonished that no politician thinks that we are no angered by an increase in fuel tax! We pay more per litre than US pays per gallon. Don't listen to people saying this is because of the barrel prices - this is entirely down to the greedy hidden tax by THIS GOVERNMENT. Yes protest and I will come with you!

J Blog April 8, 2010

report reply to J Blog

Yeah great idea Ron I'm sure that will work.. why don't you stop eating for a day to teach the supermarkets a lesson too..

As for using public transport Man.. if everyone went with that plan public transport would probably grind to a halt due to sheer volume of people and chances are you'll find the "special offers" on rail tickets disappear for a day so that rail companies can cash in..

Donald Bowler April 8, 2010

report reply to Donald Bowler

I use Diesel, not petrol, and for the first time for years diesel was cheaper than petrol when I bought some on 6th April. Whilst road fuels are more than expensive enough, the crazy thing is that the fixed costs of motoring are so high (VED, insurance, servicing, depreciation) and cost of public transport prohibitive (if it exists in ones area) that once someone has got a vehicle they are inclined to use it, whatever the cost of fuel. Many people need a larger vehicle, which will use more fuel, and so they will be paying more tax, but they will also be paying more VED, JUST FOR OWNING THE BIGGER VEHICLE. It is the use of a vehicle which causes emissions & emits CO2, not the ownership (apart from the embedded energy in making the vehicle) and so VED should be abolished and the loss in revenue added to fuel costs - at least then the taxation would be proportionate to use of the vehicle.

Michelle Ackroyd April 8, 2010

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I, like others commenting here, cannot drive any less than I do now. I do car share with a colleague, however, I haven't notice any actual savings regarding the cost of petrol. I changed my car to a diesel some years ago but now pay more for fuel than my unleaded friends. Why is diesel now more than unleaded fuel? I cannot get to work by public transport. Having tried this when the weather was bad it took me 2½ hours and involved getting a lift to the train station, two trains and a walk to work. Luckily I managed to get a lift home! Its time for the supermarkets to have a price war on fuel.

Tony Garner April 8, 2010

report reply to Tony Garner

Time to believe that Gordon Brown has conned us all yet again. Devaluing the pound (so drastically) makes everything expensive to includr oil imports and with his stealth taxes so obvious we no longer complain. The only way to show our feelings is to vote him and his crooked cronies out of power next month and lets get Britain back to where it was before the last trrible 13 years of Labour missmanagement.

Jk April 8, 2010

report reply to Jk

Wouldn't it be great if there was a new petrol company that worked on a not-for-profit basis? Something like the Co-op or a mutual building society. Even better if they could source oil directly instead of on the futures markets where greedy unscrupulous traders manipulate prices for their own benefit (think Enron). could there be ethical Fairtrade petrol like for coffee and chocolate?

Barrymore Thomas April 8, 2010

report reply to Barrymore Thomas

This price hike on fuel is 'greed on top of greed'. Greedy petrol companies coupled with one big greedy government. The government can see a way of making easy money, so they can fill their own deep pockets.

Bobby Hewitson April 8, 2010

report reply to Bobby Hewitson

I agree - let's protest now and get as much media coverage as possible - it should be a major election issue as it effects millions of tax payers. Where is all the money going? I've never seen as many pot-holes, its an absolute joke. We're not greedy - let's bring the price down to about £1 - we will spend the money elsewhere enjoying ourselves, still contributing to the economy!

D.clarke April 8, 2010

report reply to D.clarke

I remember during the high fuel price issues in 2008, mails were circulated to block Refinerys, Pickets blockaded fuel depots, mails were sent to boycott Esso for a day etc. etc. This was when Petrol rose to 70p a litre, now it is £1.20 and no one seems to be doing anything. I think that the Govt. is wrong to keep raising petrol duties continuously without thought for people's finances. I expect MP's claim for their petrol and I don't think whoever gets in will reduce duties so us poor suffering motorists will be left to carry the burden. I can get to work by public transport, it takes me 90 minutes longer, involves 2 trains and a works bus, plus a 30 minute walk. I need my car. What I don't need are these cheating theiving Politicians that do not care about their citizens. My tip, freewheel into the Potholes, that saves you petrol ;-)

Man April 8, 2010

report reply to Man

Lets all stop buying for a period, make the effort to use public transport.

that will bring the price down

Beverley Thompson April 8, 2010

report reply to Beverley Thompson

The idiots in government who are lining their pockets with the tax on petrol just don't get it...public transport in London is fantastic compared to elsewhere in the country - we HAVE to use our cars. It's a tax on not living in London. They are turning a blind eye to what's happening at the pumps - let's have them all put on the spot during the election campaign, see who's actually going to do something about these ridiculous prices.

Richard Lee April 8, 2010

report reply to Richard Lee

I consider it a complete disgrace that when there is an increase in the price of oil as there was last year, the news is all over the TV about how the cost of petrol and diesel are going to rise instantly to pay for this increase. But then when the price of the oil decreases back down again the public never see a cost reduction at the pump, instead it remains at a crazy high price!

Ron April 8, 2010

report reply to Ron

Why not have a day when no one purchases fuel (except emergency services). that will get the price down. Someone is making a fortune out of this, who is the question

John April 8, 2010

report reply to John

You can't say that the falling pound has been the main reason for prices rising when tax makes up 65% of the price, compared to only 27% for the product itself.

Anyway, why has it got anything to do with exchange rates? We have our own oil, Brent Crude from the North Sea, so why is it being sold to us in dollars? Looks like we are getting ripped off again.

Hoops April 8, 2010

report reply to Hoops

please stop emailing me. I don't care about petrol prices. I have a bus pass.

Adele Aylwin April 8, 2010

report reply to Adele Aylwin

Another nail in the coffin for small businesses! I need to be able to travel to reach appointments to secure new business so I can continue to employ my staff. Public transport is simply not an alternative and I rely heavily on my car. If I am to raise my selling prices to take into account the postal increases and the HUGE petrol price hikes, my clients will stop buying from me. The government (whoever that may be, in due course!) needs to get a grip and allow the people of this country to help themselves by earning an honest living - and that means being able to get from A to B without taking out an overdraft!

Mike April 8, 2010

report reply to Mike

I just spent 10 years in Tenerife the fuel there went down within 24hr when the price of crude came down why cant it happen here ???

Matt April 8, 2010

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I agree with Paul, that a fuel strike should yet again be considered. We never seem to really kick up much of a stink about things. We sit here moaning about the price but none of us actually do anything about it. A fuel protest would generate an interest from the parties who dont are going to want to keep the voting public happy. Mind you taxes on everything have gone up under labour as they have bankrupted the country. Fuel protests are the only way to get the message across.

Cfroude April 8, 2010

report reply to Cfroude

I have noticed that cars aren't driving quite as fast, perhaps like me, they're mindful of using more fuel. Have to drive of course for work but think about combining drive to work with shopping etc., more than before.

Phil April 8, 2010

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I really don't think I fuel protest will do anything anymore, no I am not happy with the increase but they will increase it anyway no matter who you vote for.

Dgk April 8, 2010

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I can't drive any less. I go to and from work every day, that's it. Public transport isn't an option as it will cost even more and is far less convenient due to where I work (Two busses required, and only one every hour, hardly ever on time).

I've been looking this morning at selling my car for something more economical, it absolutely disgusts and saddens me that I have to do this, however thanks to the 'wonderful' scrappage scheme, car prices are ridiculous and I can't really afford the sort of car I'm after without getting top dollar for mine and still plonking down at least another £1,000 on top... something I simply can not afford to do.

Paul April 8, 2010

report reply to Paul

Time for another fuel protest to make the high fuel prices an election issue. This is the only time we can focus the minds of polititians

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