Exmouth: Fuel prices could soon hit £2 per litre in UK, RAC warns

The price of fuel could soon hit £2 per litre in the UK, according to the RAC.

Fuel prices saw their biggest daily jump in 17 years on Tuesday 7 June, and they're still rising. In Exmouth, prices as of this morning are for example 193.9p per litre of petrol and 191.9p for diesel at the Shell garage on Salterton Road and 187.9p for petrol and 189.9p for diesel at the Esso garage on Exeter Road.

The increases are being driven by a whole host of factors, including an increase in demand in China, the peak driving season in America and Europe, a weaker pound, and the war in Ukraine.

It comes amid a wider cost-of-living crisis hitting households across the nation.

RAC fuel spokesperson Simon Williams said: "The cost of filling a 55-litre family car with petrol has now topped £98 for the first time in history as a result of a litre hitting a new all-time high of 178.5p on Monday. Diesel also rose to yet another record by reaching 185.2p which takes the cost of a tank to £101.86.

"With analysts predicting that oil will average $135 a barrel for the rest of this year drivers need to brace themselves for average fuel prices rocketing to £2 a litre which would mean a fill-up would rise to an unbelievable £110.

"The oil price is rising due to increased demand for fuel across the world as China eases its Covid restrictions and America and Europe go into the peak summer driving season. All this combined with a weaker pound at $1.2 means wholesale fuel costs more for retailers to buy. The wholesale price of diesel is fast approaching 160p a litre which, when you add 7p retailer margin and 20% VAT, would take the pump price over the £2 mark.

"We strongly urge the government to take drastic action to help soften the impact for drivers from these never-before-seen pump prices."

You can check fuel prices in your area online here.