Chancellor Rachel Reeves Warns Fuel Retailers Over Price Hikes Amid Conflict
Chancellor Rachel Reeves has issued a strong warning to fuel retailers regarding the hiking of pump prices, as petrol costs have surged to an 18-month high. The Labour Party Chancellor met with company executives yesterday to discuss the impact of the ongoing Middle East conflict on fuel markets.
Government's Stance on Fuel Price Increases
During the meeting, Ms Reeves emphasized the need to ensure that price rises are limited to what is absolutely necessary and no more. She stated, "We have concerns around the high prices and we do have a shared obligation." She added that families are closely monitoring pump prices, and the government is determined to do everything possible to keep those prices as low as possible.
Energy Secretary Ed Miliband also reinforced this position, stating that the Government would not tolerate unfair practices. In response to the situation, Ms Reeves has already requested the competition watchdog to crack down on what she described as rip-off fuel prices.
Impact on Households and Drivers
Simon Williams, head of policy at the RAC, highlighted the financial pressure on households, particularly those dependent on cars. He reported that the average price of a litre of unleaded petrol has risen by 6%, or nearly 8p, to 140.6p since the start of the conflict, marking the highest level in 18 months.
Diesel prices have seen an even sharper increase, rocketing by 12% or almost 17p to 159.2p per litre, a price not seen since November 2023. This means filling a family car now costs £4 to £9 more than it did less than two weeks ago.
Mr Williams warned that if the Middle East war becomes drawn-out, diesel motorists who fill up once a week could pay £468 more annually compared to just a fortnight ago. He expressed concern over the speed at which drivers are feeling the effects, especially with oil prices exceeding $100 per barrel and wholesale fuel costs continuing to rise.
Calls for Fair Treatment and Recommendations
Mr Williams stressed that drivers deserve and should expect to be treated fairly when filling up, particularly as pump prices continue to climb. He expressed hope that the meeting between the fuel industry and government will be productive in addressing this critical issue.
To help drivers manage costs, the RAC recommends using free apps such as myRAC to ensure they always pay the lowest possible price when purchasing petrol or diesel. This advice comes as part of broader efforts to support consumers during this period of economic strain.
