AA warns Labour move could push drivers towards | Tech News
Labour could push drivers close to the “worst” petrol and diesel fuel prices in over a decade if Chancellor Rachel Reeves makes one choice at her Autumn Budget. Last 12 months, Labour determined to freeze fuel obligation charges and continued with the 5p cut launched by the Conservatives back in 2022.
However, scrapping the low cost and mountain climbing fuel obligation charges would ship petrol station prices hovering, with highway customers more likely to pay the best payments since 2012. Predicting petrol and diesel costs over the remaining of 2025, AA spokesperson Luke Bosdet predicted “price volatility” would proceed. However, he advised that the risk of a fuel obligation price hike was more potent for motorists’ payments, pushing prices above 140p per litre.
Speaking solely to Express.co.uk, Luke mentioned: “Price volatility and the postcode lottery remain the bane of UK drivers and I don’t see any change in that. Wars in the Middle East and Ukraine and global economic and financial trouble created by tariffs and other factors make it impossible to predict.
“You also need to remember that, should the Chancellor end the 5p fuel duty cut which is worth 6p with VAT, current petrol prices at above 135p a litre would move to within 2p a litre of the worst UK drivers suffered before Covid and the Ukraine war (142.5p in 2012).”
According to RAC Fuel Watch, petrol costs often fluctuated between 120p per litre and 130p per litre between 2013 and 2020. Unleaded petrol costs by no means exceeded 140p per litre during this period earlier than tanking at first of Covid.
At one stage, Unleaded petrol fell as low as 101p per litre earlier than prices started spiralling out of control. Costs first exceeded 140p per litre on the back finish of 2021, however within the aftermath of the Ukraine War prices elevated as high as 190p per litre.
The AA warned that the increase in fuel charges could result in motorists deciding to ditch petrol and diesel vehicles and move to electric fashions.
Luke added: “Little wonder that so many car owners now say that they have had enough being held hostage by government and the fuel trade, and are now switching to electric where home charging is considerably cheaper and predictable.”
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