Oil prices surged this year following Russia’s invasion of its neighbor, which led to a number of large companies and countries shunning the nation’s oil…reports Asian Lite News
The cost of filling up a standard car in Britain, already at an all-time high, surged by the most in 17 years to underscore the inflationary pressures the country faces from soaring fuel bills.
Unleaded petrol jumped by 2.23 pence a liter on Tuesday, the biggest one-day increase since the early 2000s, according to the RAC, a UK motoring organization. That drove it to a fresh high of 180.73 pence (about $8.60 a US gallon) and lifted the cost of filling up a car with a 55-liter tank to £99.40. Diesel also jumped to a new record.
“These are unprecedented times,” said RAC fuel spokesman Simon Williams. “Sadly, it seems we are still some way from the peak.”
While the price of diesel is heading toward £2 a litre, the cost of wholesale petrol unexpectedly dropped by about 5p a litre on Tuesday, Williams said. If that lower price is maintained in coming days, it could stem the flow of daily record retail prices, he said.
Oil prices surged this year following Russia’s invasion of its neighbor, which led to a number of large companies and countries shunning the nation’s oil. More recently, China’s major cities have been loosening Covid restrictions and the US summer driving season is now underway — both of which are bullish for demand.
Wholesale prices for gasoline and diesel have risen faster than crude oil since the war began, helped by a bottleneck in the global oil refining system at a time when demand has been recovering from the virus.
Rising fuel costs appear to be taking up a larger share of people’s expenditure in the UK, according to a report from Barclaycard. Spending on energy and fuel increased 34.5% and 24.8% respectively in May, while outlays at supermarkets fell 2%.
Rising petrol prices are putting pressure on household budgets, with energy bills and food prices also now at multi-year highs…reports Asian Lite News
Britain’s leading motoring forums urged the government to step into control the rising fuel prices.
The RAC motoring group called it “a truly dark day” as the cost of filling a 55-litre tank reached £100.27 for petrol and £103.43 for diesel. The RAC and its rival the AA urged the chancellor to cut VAT on fuel or to reduce fuel duty further.
Rising petrol prices are putting pressure on household budgets, with energy bills and food prices also now at multi-year highs, BBC reported.
Pump prices began to soar after Russia’s invasion of Ukraine in February led to oil supply fears. However, there are concerns that petrol retailers are not passing on a recent 5p cut in fuel duty to consumers.
According to the RAC, the average pump price of a litre of unleaded petrol is now 182.31p while for diesel it is 188.05p. However, the motoring group has warned this could rise to over £2 a litre soon. The Treasury said it had provided £37bn to ease the cost of living already.
TIPS TO BEAT THE FUEL PRICE HIKES
As households across the UK brace themselves for the impact of the cost-of-living crisis, CarStore’s Personal Advisors offer some tips to follow in order to improve fuel economy.
Mark Akbar, Managing Director at CarStore, said: “There are many different techniques and habits you can incorporate into everyday driving that will have a positive impact on your vehicle’s fuel economy. Try following even just a few of CarStore’s tips and tricks below and you may be pleasantly surprised just how much difference a change in driving style and habits can make to the miles per gallon you’ll achieve.”
Check your tyres & Tyre Pressures
One of the biggest factors in terms of fuel economy is the performance of your tyres – they are, after all, the only thing that connects your vehicle to the road. Having your vehicle’s tyres inflated to the correct pressures has a significant impact on your vehicle’s fuel economy. Under-inflated tyres can have a detrimental effect on your mpg by as much as -2.5%.
Always anticipate
Simply anticipating what is likely to happen in front of you when driving will greatly improve your efficiency as well as reduce wear and tear on your car’s brakes. While maintaining your focus on the vehicle directly in front of you, take the time to look further ahead to see what’s going on. If there’s a red light, try to lift off the accelerator a little earlier than you might normally, without taking it to extremes of course. If the lights change, you’ll still be rolling and you’ll spend less time getting up to speed, using less fuel in the process. Simply put, the less time you spend with your foot on the accelerator, the less fuel you will use.
Accelerate and Decelerate Smoothly
When the lights turn green, don’t stamp on the accelerator and get up to speed as fast as physically possible. Accelerate briskly but smoothly, reaching the desired speed in a reasonable time frame so as not to frustrate your fellow road users behind you. Don’t wait until the last minute to come to a standstill either, lift off the gas nice and early and brake gently until you come to a stop.
Remove Excess Weight
The heavier your car is, the more fuel it will use trying to get from A to B, so anything you can do to make it lighter will save you money. Roof boxes and bike racks are the main culprits, but simply having a good clear out of what’s in the backseat and the boot can have a positive impact as well.
Check Your Speed & Use Cruise Control
Always being mindful of the speed you’re travelling at is good, safe practice anyway, but it can help in terms of fuel economy too. Motorists should adhere to speed limits at all times so as they aren’t breaking the law, but saving money is another solid reason to do so. For instance, travelling above the national speed limit at 80mph instead of 70mph will use an extra 10% of fuel, as well as cost you extra money in speeding fines too. Cruise control only helps the situation too. Slowing down and speeding up increases fuel usage in a big way, so letting the car maintain the exact cruising speed for you whenever possible is simply the most efficient way to get around.
Use Your Gears Properly
It’s not part of the driving test to learn how to use your gears efficiently, you simply have to be able to use them to get the car to move at various speeds. However, to make the most out of every drop of fuel and maintain maximum efficiency, it’s vital that you’re always using the right gear at the right time. Be careful not to over-rev the engine, as this will use more fuel, and make sure you don’t labour the engine by being in a gear that’s too low for the speed and terrain. Generally, petrol cars are at their most economical between 1500 and 2500 rpm, so you should aim to change up to the next gear whenever you exceed the higher end of that band. For diesels, it’s between 1300 and 2000 rpm.
Service & Maintain Your Car
Ensuring that your vehicle is in tip-top mechanical shape is vital when making sure that fuel economy is as good as it can be. A car that has its engine serviced regularly and in line with service schedules using the correct parts, fluids and lubricants will work better and be more efficient than one that isn’t. It’ll be more reliable too. Wheel alignment (also known as tracking) can also have a negative effect on fuel economy too, and it can be knocked out by something as simple as a pot hole in the road, so make sure you get it checked regularly.
The world’s top oil producers have said they would stick with the plan to cautiously increase oil output despite pressure from the United States…reports Asian Lite News
Held through video conference, the 22nd OPEC (Organization of the Petroleum Exporting Countries) and non-OPEC Ministerial Meeting that concluded here on Thursday, reaffirmed the decision “to adjust upward the monthly overall production by 0.4 million barrels per day (mbd) for the month of December 2021.”
OPEC Rejects US Request On Supply Hike
The decision was made by the 10th OPEC and non-OPEC Ministerial Meeting on April 12, 2020, and was further endorsed in subsequent meetings, including by the 19th such session on July 18, 2021, Xinhua news agency reported.
Thursday’s meeting also reaffirmed the participating countries’ “continued commitment to ensure a stable and balanced oil market, the efficient and secure supply to consumers and to provide clarity to the market at times when … oil markets are experiencing extreme volatility and instability, and to continue to adopt a proactive and transparent approach, which has provided stability to oil markets,” a concluding statement said.
The decision by the largest oil producers is seen by analysts as a rebuff to the United States, which has been urging them to pump more to lower oil prices.
In the financial capital Mumbai, petrol prices fell to Rs 109.98 a litre from Rs 115.85, while diesel fell to Rs 94.14 a litre from Rs 106.62, which was also the highest among all metros…reports Asian Lite News.
The Diwali morning has brought an early sparkle for fuel consumers as retail prices of petrol and diesel fell between Rs 5-10 per litre on Thursday in line with the Centre’s announcement to cut excise duty on the two petroleum products to contain surging rates.
Accordingly, the pump price of petrol in Delhi fell to Rs 103.97 a litre at 6 a.m. on Thursday from the previous day’s level of Rs 110.04 a litre. The diesel prices fell by a bigger margin to Rs 86.67 a litre in the city from the earlier level of Rs 98.42, according to a price notification of state-owned fuel retailers.
In the financial capital Mumbai, petrol prices fell to Rs 109.98 a litre from Rs 115.85, while diesel fell to Rs 94.14 a litre from Rs 106.62, which was also the highest among all metros.
Across the country as well, fuel prices fell between Rs 5-10 per litre after the Centre on Wednesday announced that the excise duty will be reduced by Rs 5 for petrol and Rs 10 for diesel from November 4.
The cut is larger in some states such as Uttar Pradesh and Goa which have also announced VAT cut on petrol and diesel.
The Centre has said that massive reduction in excise on diesel will come as a boost to the farmers during the upcoming Rabi season. It would lose revenue to the tune Rs 40,000-45,000 crore in balance period of FY22 due to excise reduction.
Before Thursday’s price fall, there was a pause on fuel price increase on Wednesday but petrol and diesel prices had spiked for seven consecutive days prior to this to take up the retail rate of petrol by Rs 2.45 per litre in Delhi.
Similarly, diesel prices also increased in last week by Rs 2.10 a litre.
Diesel prices have increased on 30 out of the last 41 days taking up its retail price by Rs 9.90 per litre in Delhi before Thursday’s cut.
BJP takes a swipe at Centre
Taking a dig at the Centre after it cut the excise duty in petrol and diesel, the Congress on Thursday said that the government was forced to take the step after the bypoll results where the BJP lost in ruling states like Himachal Pradesh.
In a tweet, Congress Deputy leader in Lok Sabha Gaurav Gogoi said that after months of claiming that rise in duty of petrol and diesel was to “pay for free vaccines”, the BJP had to “swallow their hypocrisy” and partially roll back prices.
“The people of India have got a minor reprieve. This a day after Rahul Gandhi attacked the Govt. over inflation.”
Kudos to People for showing the “mirror of truth” to tax-parasitic Modi Govt!
But do remember –
In May 2014, Price of Petrol was ₹71.41 – Diesel was ₹55.49/litre but Crude Oil was $105.71/Barrel.
Congress Chief spokesperson Randeep Surjewala tweeted: “Kudos to People for showing the “mirror of truth” to tax-parasitic Modi Govt! But do remember -After losing 14 bye elections & 2 Lok Sabhas, reducing Petrol-Diesel price by Rs5 & Rs 10 is tom-tommed as aDiwali Gift’ of Modi Ji!”
In May 2014, he said, the price of petrol was Rs 71.41 – diesel was Rs 55.49/litre but crude Oil was $105.71/barrel.
“Crude Oil is Rs 82/Barrel,When will the prices equate year 2014?Congress Govt-:Excise on Petrol – Rs9.48/litre Excise on Diesel – Rd3.56/litre,” he added.
Fuel price hike continues for the sixth consecutive day
Petrol and diesel prices increased again on Monday, the sixth consecutive day of increase, as global oil prices failed to relent and continued to remain firm…reports Asian Lite News
Accordingly, the pump price of petrol in Delhi increased by 35 paise per litre to jump to Rs 109.69 a litre while diesel prices also increased by the same margin to reach Rs 98.42 a litre, according to a price notification of state-owned fuel retailers.
In the financial capital Mumbai, petrol prices have now risen to Rs 115.50 per litre while diesel to Rs 106.63 a litre, the highest among all metros.
Fuel price hike continues for the sixth consecutive day
Across the country as well petrol and diesel prices increased between 35-40 paise per litre, but their retail rates varied depending on the level of local taxes on petroleum products.
The fuel prices have now increased six consecutive days by 35 paise per litre. Before this after holding for a couple of days, fuel prices again had risen on previous five days by about 35 paise per litre.
Diesel prices have now increased on 30 out of the last 38 days taking up its retail price by Rs 9.90 per litre in Delhi.
With diesel prices rising sharply, the fuel is now available at over Rs 100 a litre in several parts of the country. It is very close to breaching the mark even in Delhi where it had rapidly climbed to Rs 98.42 a litre on Monday.
Petrol prices had maintained stability since September 5, but oil companies finally raised the pump prices last week and this week given a spurt in the product prices lately. Petrol prices have also risen on 27 of the previous 34 days taking up the pump price by Rs 8.50 per litre.
Crude price has been on a surge, rising over three year high level of over $ 85 a barrel now as global demand remains firm while OPEC+ continues to move slowly on increasing production. It has fallen a bit to around $84 a barrel after China released some oil from its reserve to address supply concerns.
Since September 5, when both petrol and diesel prices were revised, the price of petrol and diesel in the international market is higher by around $9-10 per barrel as compared to average prices during August.
Prime Minister Boris Johnson is expected to sign off on the plan to relax visa requirements that would allow lorry drivers back into the UK to tackle the fuel and food supply shortages, reports Asian Lite Newsdesk
In a post-Brexit U-turn, the UK government is planning a temporary visa scheme to make it easier for foreign lorry drivers to work in the UK.
Final details are expected this weekend, but any changes to immigration rules would be temporary, and there would be a cap on the number of workers allowed to enter the country, the BBC reported.
According to The Daily Telegraph, up to 5,000 temporary visas for HGV drivers are expected to be granted under the plans.
Ministers met on Friday to agree the proposals, which are also expected to see military driving examiners brought in to increase the number of HGV tests that can be conducted in a bid to boost the supply of British drivers, it was reported.
UK Prime Minister Boris Johnson (Credit No 10)
Meanwhile, it is learnt that Home Secretary Priti Patel, who had voiced her opposition within the Government to calls for the recruitment of more European drivers, was present at the meeting and is understood to have agreed to the plan, according to the report.
A shortage of drivers has disrupted fuel deliveries, with some petrol stations closing, and queues forming.
It is estimated that the UK is short of about 100,000 HGV drivers – with existing shortages made worse by the pandemic and Brexit, the BBC reported.
Earlier, Road Haulage Association had urged the government to reconsider relaxing visa requirements for lorry drivers. Rod McKenzie, managing director of policy for the trade body, said ministers were rejecting calls for short-term visas to be introduced.
Sainsbury’s said it was experiencing “high demand” for fuel, with a “tiny proportion of sites” temporarily closed.
BP said about 20 of its 1,200 petrol forecourts were closed, with between 50 and 100 sites affected by the loss of at least one grade of fuel.
A “small number” of Tesco refilling stations have also been impacted, said Esso owner ExxonMobil, which runs the sites.
EG Group, which has 341 petrol stations in the UK, is introducing a limit of £30 per customer on all grades of fuel due to “unprecedented customer demand”.
The government and industry leaders have sought to reassure the public – saying there is no fuel shortage at refineries, and urging people not to panic buy.
Meanwhile, businesses across the food and fuel sectors had also been complaining about the UK’s shortage of lorry drivers, which is causing serious supply chain problems.
Supply chain delays had been “impacted by industry wide driver shortages across the UK” and that the company was working hard to address the issues, BP said in a statement on Thursday.
Esso station
Esso said that a “small number” of its 200 Tesco Alliance retail sites were also affected on Thursday and apologised to customers for any inconvenience.
Supermarkets Morrisons and Ocado have also called on the government to add HGV drivers to its skills shortage jobs list to allow workers from the European Union (EU) to fill the current gap.
Speaking on the BBC on Thursday night, Transport Secretary Grant Shapps said that he believed the shortages had also been caused because of working conditions that “hadn’t been pleasant”.
When asked if he would be looking at changes to visas to address workforce shortages, he said that he would not “rule out anything”.
But he insisted that the “bottleneck” was getting new drivers tested and bringing people back into the job market after the pandemic, it was reported.
Meanwhile, millions of households are concerned about the rising cost of wholesale global gas this Autumn and Winter.
According to the Department for Business, Energy & Industrial Strategy, rising gas prices is a global problem, reflecting an increased demand across the world for gas as economies around the world reopens from the COVID-19 pandemic.
It said the government is working closely with energy stakeholders to discuss the impact of the increased wholesale gas prices, “but consumers should not worry about their energy supply.”
