London, (Parliament Politics Magazine) – Petrol and gas prices have become an increasing worry for households in the UK, and this pressure doesn’t show any signs of easing any time soon, thanks to the Ukraine crisis making existing shortages worse.
Recent figures showed that petrol prices per liter had surpassed the £1.60 mark for the first time. Meanwhile, unleaded petrol prices reached £1.63 and diesel prices £1.77 per liter.
The knock-on consequences could be disastrous. Households are already squeezed due to steep increases in gas and electricity, and many industries are also suffering — from taxi services to driving tuition to freight.
Yet the government has profited from the high fuel prices due to VAT on petrol, which currently stands at 28p per liter. As a result, many are calling for a reduction in VAT rates.
This could make the difference between scraping by versus drowning in debt for many households, who will soon face national insurance hikes and even higher gas prices. Unfortunately, it seems unlikely that petrol and diesel prices will go back down any time soon.
Now that many countries (including the United States) have stopped buying oil from Russia, the demand for fuel from other countries is higher than ever.
The UK currently imports about 6% of its oil from Russia and hasn’t stopped buying from the country yet, but aims to reduce how much it’s buying over time. All eyes are on Chancellor Rishi Sunak as the country struggles to get through these trying times.