Fuel prices at eight-year high will drive motorists to EVs, says RAC

High fuel prices could lead more drivers to switch to electric cars, according to the RAC, which has just released a review of current fuel prices in its latest Fuel Watch report.

It confirms that petrol is now at its highest price for nearly eight years after eight months of increases. A litre of unleaded rose by 2.7ppl in June from 129.52ppl to 132.19ppl (based on Experian Catalist UK national average pump prices from June 1-30, 2021) taking it to a price last seen in October 2013; while diesel went up 2.5ppl from 131.79ppl to 134.32ppl – its highest in two years (134.34ppl on June 10, 2019).

The report estimates that the June rise added £1.50 to the cost of filling up a 55-litre family car with a tank of unleaded - total cost £72.70, a rise of £10 since early November, when a litre of petrol cost 114.12ppl.The average cost of a complete fill-up with diesel is now £73.88 – an increase of £1.40 in the month.

The average price of unleaded at the country’s four big supermarkets now stands at 128.17ppl after going up 3.3ppl in a month. Diesel is 130.25ppl after a rise of 2.91ppl. RAC Fuel Watch estimates that this makes a tank of supermarket fuel on average £2.20 cheaper than at other forecourts.

RAC Fuel Watch says June’s pump price rises have been driven by a 10% increase in the cost of oil which saw a barrel go up from $69.37 to $76.12 at the end of the month. This in turn has led to a 3ppl hike in the wholesale cost of petrol and a 2ppl jump in diesel (petrol – 102.26ppl; diesel - 101.76ppl).

RAC fuel spokesman Simon Williams said: “June proved to be a shocking month for drivers with not just the eighth straight monthly rise at the pumps, but a return to 132ppl petrol – something we haven’t seen since October 2013.

“And if an 18ppl hike in cost over eight months isn’t bad enough it’s hard to see the increases coming to an end as the price of oil seems to be going up and up, with $6 being added to a barrel in June alone. Compared to a year ago oil is now $35 more expensive. What’s even more worrying is that some analysts are predicting an oil deficit by the end of the year, which could mean further relentless price rises in the coming months.

“Ever-escalating fuel prices may, however, help to speed up the switch to electric cars as that is a sure-fire way of avoiding the wallet-stinging feeling at the pumps. And while many drivers think getting into an electric car is expensive, it’s actually more affordable than ever as you can lease an EV via the RAC for as little as £227.99 a month. For anyone who drives in the region of 10,000 miles a year that would mean an annual saving of almost £1,500 - based an average of 40mpg - at the current average petrol price of 132ppl.”

Regional pump prices compared