Out of 13 EU countries that have cut tax on petrol in order to ease the spiralling costs faced by drivers every time they fill up, only one – Luxembourg – has done less than the UK Government, with a duty cut in April worth the equivalent of 4.52p compared to the 5p duty cut announced at the UK Budget in March. It’s a similar picture for diesel, with only Croatia doing less for its drivers than the UK, with a cut worth 4.5p.

The UK Government’s intervention back in the Spring looks paltry when compared to most other European nations, with Germany taking the equivalent of 25p a litre in tax off per litre of petrol on 1 June, Italy 21p, Portugal 16p and both Ireland and the Netherlands nearly 15p, according to the RAC’s figures. Ireland ranks fifth when it comes to both petrol and diesel cuts.

Table showing Petrol comparison: https://datawrapper.dwcdn.net/ybRVm/1/

Tables showing Diesel comparison: https://datawrapper.dwcdn.net/RQzWH/1/

As an alternative to cutting fuel duty, governments of other countries in the EU have introduced fuel discounts at forecourt tills with Spain taking off 20 cents (about 17p) and France 18 cents (about 15p), while some fuel retailers including TotalEnergies in France and BP Spain have discounts running of up to 40 cents per litre (about 33p).

Of the remaining 15 EU states that haven’t taken steps to lower pump prices since March, all but six already charge less fuel duty than the UK even after the UK cut fuel duty by 5p in March’s Spring Statement.

Although UK pump prices have finally started to fall in recent days – after significant pressure from the RAC on retailers to reflect the fact wholesale fuel costs have been falling for seven straight weeks – the average price of a litre of both petrol and diesel is well above the current EU averages of 159p and 161p respectively.

The UK is currently the joint-second most expensive country when it comes to the average cost of a litre of petrol (186p) – behind only Finland (190p) with Denmark also at 186p – and the second most expensive for diesel at 195p per litre, with only Sweden charging more (201p).

The only apparent silver lining is that drivers heading abroad with their own cars this summer will benefit from lower pump prices on the other side of the Channel. The cost of filling a 55-litre family car with petrol in France, for instance, is around £12 cheaper than it is in the UK (£89.66 compared to £102.30), and for diesel is £17 cheaper (£90.20 compared to £107.25 in the UK).

RAC fuel spokesman Simon Williams said: “This analysis lays bare an uncomfortable truth for the UK Government – that compared to other European countries, it’s pretty much done the least to support drivers through the current period of record high fuel prices. The result is the UK being one of the most expensive places to fill up and putting it above other countries that have historically charged more for fuel than UK retailers do, including France and the Netherlands.

“Perhaps even more frustratingly, those countries that have not cut tax on fuel at all since March – including Greece and Austria – are still cheaper than the UK. At the opposite end of the spectrum, some other nations have done a huge amount with Portugal cutting duty an incredible seven times since March, and France and Spain both offering significant discounts on fuel at the checkout.

“Drivers might also be surprised to learn that some major oil companies and fuel retailers – including BP in Spain and Total in France – have decided to introduce their own discounts, something that’s unheard of here. At least UK drivers venturing abroad this summer will be pleasantly surprised that prices are in some countries significantly lower than at home.

“The cost-of-living crisis shows no signs of coming to an end anytime soon and it’s frustrating that repeated calls to the UK Government for more support are falling on deaf ears. UK pump prices might be finally starting to fall, but the reductions so far are too little and too late, given the massive wholesale price drops retailers have been benefiting from for nearly two months.

“Drivers, many of whom depend heavily on their vehicles, need more help and they need it now.

“For any drivers heading to Europe in their own cars this summer, ensuring they have a comprehensive level of European breakdown cover is also vital to give complete peace of mind.”

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RAC fuel spokesman Simon Williams said: “Inexplicably, fuel prices rose yet again yesterday with petrol hitting a new all-time high of 191.24p per litre and diesel just short of another record at 199.01p.

“We can see absolutely no rhyme or reason why average forecourt prices are still going up, given that the wholesale price of both fuels has been falling for weeks.

“Drivers up and down the country have a right to know why they’re having to pay what they are for fuel when the costs to retailers right now are so much less they were a few weeks ago. Next Thursday’s announcement by the CMA following its review will no doubt be watched very closely.

 “Suggestions that the Government might be about to announce more support for hard-pressed drivers are welcome. A cut to the price of forecourt fuel really can’t come soon enough.

“If it’s a further fuel duty cut that the Chancellor decides on, it’s absolutely vital that this is passed on in full immediately by retailers to give drivers some respite from these historic high prices. It’s also vital the Government monitors the wholesale market and closely scrutinises retailer margins.”

On Monday the RAC had expressed hopes that pump prices had peaked for the time being as petrol crept only very slightly higher than the day before at a new record average price of 191.1p.

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Their comments come as both the price of petrol and diesel set new records on Friday, with petrol averaging 190.22p a litre and diesel rising to 198.46p.

The RAC warned that motorists have every reason to be angered.

Fuel spokesman Simon Williams said: “The average price of petrol has now sadly reached another miserable milestone by topping £1.90 a litre (190.22p) and diesel has also moved up another half a penny to 198.46p. With both fuels once again setting new records, full tanks now cost £104.62 and £109.15 respectively.

“The cost of petrol at the pumps should really have stopped rising by now and should in fact be going into reverse. For some strange reason, the supermarkets continue to push unleaded higher very much against the trend on the wholesale market. Drivers have every right to be angered by this.

“While there is no doubt wholesale costs increased dramatically a few weeks ago this is not the case now, so pump prices must start to fall for fuel retailers to retain credibility with their customers as well as not attracting the negative attention of the Competitions and Markets Authority.”

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The stats show that Northern Ireland still has the lowest unleaded and diesel prices, but the February increase in the average price of petrol across the UK was the fastest since a new monthly record was set last October when unleaded went up 7.5p and the eighth largest monthly rise on record. A litre of unleaded ended the month at 151.16p, up from 146.62p at the start.

Prices hit a new all-time high on Sunday 27 February of 151.25p. The increases mean it now costs £83.14 to fill a 55-litre family car, £3 more than it did at the start of the year and a huge £15 more than a year ago (a rise of 22%).

Drivers of diesel vehicles witnessed even larger increases at the pumps, with a litre going up 4.76p to finish February at 154.75p, a new record high price. This was the seventh largest monthly price increase on record and the biggest since last October (8p). It now costs £85.11 to fully fill a 55-litre diesel car, up from £82.49 at the start of the month and £69.67 a year ago.

The rising pump prices are entirely down to increasing wholesale fuel prices caused by the oil price jumping by $10 in February, ending the month at $103.26. Just four days earlier, oil hit $106.61, its highest level since August 2014.The decision by Russia– the world’s second biggest oil producing nation – to invade Ukraine was primarily to blame for the continued oil price increase but even before the conflict oil output was lagging behind worldwide demand, which is building as the coronavirus pandemic wanes.

Despite the rising prices and the inevitable impact they are having on drivers, especially those on lower incomes, the RAC’s analysis does suggest retailers’ margins which were dramatically inflated at the end of 2021 are now back to more normal levels. During February, the average margin was 8p for each litre of petrol and just under 6p for each litre of diesel, compared to 16p and 12p respectively during December.

RAC fuel spokesman Simon Williams said: “February was undoubtedly a shocking month for drivers. A rise of 4.5p in any month is bad enough but when it takes pump prices to record levels, it’s bound to hurt households across the UK.

“Motorists are having to endure successive months of rising prices and, sadly, it doesn’t look as though February will be the last. While prices were rising due to oil production not being able to keep up with demand as life becomes more normal again, Russia’s invasion of Ukraine caused the barrel price to shoot past the $100 a barrel mark for the first time in nearly eight years making wholesale fuel far more expensive.

“We know from RAC research that eight in 10 drivers would struggle to get by without their cars and that the pandemic has made access to a car even more important than ever, but the exorbitant cost of filling up may force people to cut down on non-essential journeys to save money.”

“The RAC is now calling on the Treasury to look at an emergency, temporary cut in the VAT rate levied on fuel to ease some of the pain drivers are facing and to better protect them from upcoming rises.”

Regional pump prices compared

Find out more about UK petrol and diesel prices on the RAC website.

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