Motorists face a fresh financial squeeze as petrol and diesel prices soar by 23%, with campaigners demanding action from Andy Burnham’s Government.
Andy Burnham’s Government is facing calls to cut Fuel Duty. (Image: Getty)
UK households are facing a fresh financial squeeze under Andy Burnham’s Labour Government, with petrol and diesel prices up 23% over the past year and motorists warned they are being “mugged at the pumps”.
The warning comes from campaign group FairFuelUK after official figures showed UK inflation climbed from 2.9% to 3.1% in August.
Motor fuel was the biggest contributor to the increase in inflation, with petrol prices rising by 9.1p a litre between July and August to an average of 161.3p. Diesel rose by 14.2p to 181.8p over the same period.
UK motorists are facing soaring fuel costs (Image: Getty)
FairFuelUK said the situation has worsened further during September, with petrol reaching around 170.5p a litre and diesel 192.9p, taking prices to their highest sustained levels since 2022.
Howard Cox, founder of FairFuelUK, said: “Inflation is rising because pump prices are rising, and pump prices are rising because the system is broken.”
He described the situation as a “cost-of-driving catastrophe” and called for the Government to cut Fuel Duty.
“Drivers are being mugged at the pumps,” Cox said. “Small businesses are being suffocated. Hauliers are being crippled.”
The latest figures show how significant fuel prices have become to the inflation picture, with motor fuel prices 23% higher than a year earlier.
FairFuelUK argued that higher fuel costs have consequences beyond motorists, with businesses facing increased costs for deliveries, travel and transportation.
The campaign group said a family car could now cost an additional £100 to £120 a year to run because of the rise in petrol prices, while a diesel van could face hundreds of pounds in additional annual fuel costs.
For the haulage industry, FairFuelUK estimates that an HGV using between 50,000 and 60,000 litres of fuel annually could face thousands of pounds in additional costs.
Those increases can then feed through into the wider economy as businesses seek to cover higher transport and operating expenses.
Mr Cox also criticised the impact of tax on rising pump prices, arguing that VAT increases as the underlying fuel price rises.
The campaign group says cutting Fuel Duty could provide immediate relief for motorists and businesses while helping to reduce pressure from fuel costs.
The warning comes as households continue to face higher motoring costs, with petrol and diesel prices adding pressure to family budgets and businesses reliant on road transport.
FairFuelUK has urged ministers to act on both Fuel Duty and pump-price regulation as motorists face another period of elevated fuel cost.