Drivers in the UK are at risk of petrol and diesel price spikes, according to a warning from Colin Walker, Head of Transport at the Climate & Intelligence Unit (ECIU). The warning follows a report from the International Energy Agency (IEA) released on Friday, which stressed that “industry stock draws have exceeded normal rates.”
Exposure to Global Conflicts
Walker stated: “The IEA's warning is yet another reminder of how exposed British drivers are to price spikes caused by wars fought elsewhere in the world. Let's be clear, if government heeded calls from parts of the car industry to water down EV policy, families will stay vulnerable for longer.” He emphasized that electric cars are increasingly charged by British renewables as more wind and solar farms are built, and thanks to Government policy, more and more are now reaching the second-hand market where most people buy their cars.
Recent Price Trends
According to the AA motoring group, the price of a litre of petrol has decreased by 4.6p, from 159.7p on 28 May to 155.1p this week. Diesel has dropped by 9.3p, from 184.4p per litre to 175.1p in the same period. The AA’s Luke Bosdet commented: “We have been surprised at the speed of the reductions and concluded that this is the influence of Fuel Finder: retailers seeing how much rivals are cutting their prices and, knowing that drivers can see the same information, having to respond.”
Impact on Fuel Sales
Grant Fitzner, the chief economist at the Office for National Statistics (ONS), noted: “After strong growth last month, motor fuel sales fell in April, with evidence suggesting motorists were conserving fuel after stocking up in March. These subdued fuel purchases contributed to a sizeable monthly fall for total retail sales in April.” The ONS also slightly revised down its initial estimate of retail sales growth in March from 0.7% to 0.6%.
