Why fuel price increase

Duty paid on fuel is currently VAT, currently around 24p a litre, is applied on top of all other elements of the petrol price, including duty and the retailer's profit margin. Petrol and diesel cars are slowly being phased out as part of pledges to tackle climate change. The government says it will ban the sale of these from The introduction of the E10 fuel as standard this summer is also part of that drive.

The Department for Transport says bringing in this new fuel could cut carbon emissions by , tonnes a year, the equivalent of taking , cars off the road.

RAC fuel spokesman Simon Williams said: "When it comes to pump prices, it's a pretty bleak picture for drivers. There is a national shortage of lorry drivers, which haulage firms have blamed on factors including Covid and Brexit.

The lack of drivers has been affecting businesses from food firms to petrol stations. There have been claims on social media that some petrol stations are taking advantage of the surge in demand to inflate prices. Twitter user Trevor Lakin said that Shell was "marking prices up and profiteering" after charging A Shell spokeswoman said that about half of Shell's UK network is owned by independent dealers who set their own prices.

Howard Cox, founder of campaign group FairFuelUK, said price rises of between 5p and 10p per litre have become "the norm in the last few days". There is a hike in prices due to an increase in demand and supply shortages. Premium Premium Best home loan rates. Premium Premium Estate route is an advisable option for inheritance. Subscribe to Mint Newsletters.

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