Fuel Prices Soar To Record Highs In 2011

Last year, at the start of 2010, petrol costs were averaging out at around 110p per litre, with diesel closely following at 111p per litre. This year those prices have risen to a shocking 127p per litre for petrol and 131p per litre for diesel; that’s around 20 pence more you’re paying for each litre that you fill your tank with!

So why has this happened do you ask? Well, one of the main factors for the increase in fuel prices is the 2.5% VAT (value added tax) rise that took place from 4th January 2011, hiking VAT up to a staggering 20%. Another reason that petrol prices have also risen, and will most likely continue to rise, is fuel duty and transport costs. The cost of transportation is on the increase which is having a knock-on effect on fuel prices and those increases are being passed on to the consumer.

Fuel prices aren’t the only thing that increased transportation costs could affect though, it could also affect the price of the goods we buy, such as food and toiletries, which will cost more to transport. These prices have to be recouped somewhere and that is most likely going to be reflected in the price of the goods themselves.

There have also been fears over the rising fuel prices as members of the general public worry that it will cause an increase in petrol-related crime and people will start stealing petrol because they simply cannot afford it. Other concerns have also been raised by holidaymakers who travel to their destinations by car because they cannot afford to travel overseas by plane. One couple who go to France on a motorcycle will now have to reconsider their holiday plans because they cannot afford the petrol prices at such an increased rate.