Petrol and diesel prices remain high amid dire warning

The latest data from RAC Fuel Watch shows that drivers are still paying high prices at the pumps after diesel reached its highest-ever level earlier this month.

Motorists are paying an average of 173.98p for petrol, while diesel drivers are still paying more than 199p per litre.

A new poll from FairFuelUK states that almost one in four business reported that they “cannot survive much longer” without meaningful help with fuel.

In a survey of more than 6,600 firms, 43.9 per cent said they were just about surviving, while only 3.1 per cent described their status as comfortable.

Experts have continually warned that the prices of goods and services would continue to rise as businesses pass higher costs onto consumers.

More than one-third of firms (34.7 per cent) said they were being forced to raise prices. More than 15 per cent reported severe profit reductions.

Howard Cox, founder of FairFuelUK, said oil costs rising to $116 should “be setting off alarm bells in every Government department”.

He has called on Chancellor John Healey to take action in the upcoming Autumn Budget to help ease the burden felt by drivers at the pumps.

Mr Cox stated: “Every builder’s van, every taxi, every delivery vehicle, every farmer’s tractor and every HGV relies on affordable fuel. When oil spikes, the consequences spread throughout the economy.

“Food becomes more expensive. Services become more expensive. Inflation rises. Investment stalls. Jobs are put at risk.”

He pointed to other countries where governments have introduced fuel-tax reductions or subsidies to help drivers navigate everyday life without worrying as much about petrol and diesel costs.

The Republic of Ireland recently extended its diesel rebate scheme, with an enhanced maximum rate of 12 cents (10p) per litre being extended until December 31.

“Other governments recognise affordable fuel is an economic necessity. Westminster continues to view drivers and small businesses as a convenient source of tax revenue,” Mr Cox said.

The current fuel duty freeze is expected to end at the end of the year, after former Prime Minister Sir Keir Starmer extended the price cut earlier this year.

Fuel duty is expected to rise in January by 3p per litre, before the entire 5p cut is removed next March, unless Government action is taken.

Prime Minister Andy Burnham recently said that he was considering “every possible measure” to cut the cost of fuel for millions of motorists.

A HMT spokesperson told GB News: “As has always been the case, decisions on tax are a matter for the Chancellor to set out at fiscal events, and we do not routinely comment on rumour, speculation or proposals.”