Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Daily Mirror
Daily Mirror
National
Jack Abela

Why have petrol prices soared in 2022 and will they ever go back down?

Petrol prices have rapidly increased over the last six months, setting record highs at the beginning of July.

At the start of the month prices reached amounts of 191.53p for petrol and 199.07p for diesel, making a full tank of petrol the most expensive it has ever been.

Average prices have now reduced slightly, but are nowhere near the costs they were at the start of this year.

From the pandemic to Russia's invasion of Ukraine, we take a look at why fuel has become so expensive and if prices will ever go back to the way they were.

Why has fuel become more expensive?

Petrol costs this month have made it more expensive than ever for people in the UK to fill their tank (Getty Images)

The price of crude oil, a substance used to make both petrol and diesel has increased - making both forms of fuel more expensive to make.

Petrol retailers don't always reduce the price when the cost of crude oil decreases.

Both the RAC and the AA have accused retailers of maintaining high prices and keeping the extra profit.

The pandemic and war in Ukraine have both lead to an increase in fuel cost (AFP via Getty Images)

Has the pandemic increased petrol and diesel prices?

Yes, it has been a factor.

When the pandemic hit, crude oil actually became cheaper. Many companies collapsed and the demand for oil was less.

But as restrictions eased and some sort of normality was restored, demand increased again and prices have continued to rise.

Another contributing element is that the price of oil is normally charged on the dollar.

With the pound suffering during the peak of the pandemic, the foreign exchange rate meant an increase in price for the UK.

Has Russia's invasion of Ukraine added to the cost?

Russia is one of the world's largest oil exporters (Sputnik/AFP via Getty Images)

Fuel prices had been increasing since Covid restrictions were relaxed, but when Russia declared its invasion of Ukraine, fuel was added to the fire and prices surged even more.

Russia's oil exports account for most of the world's intake, and due to sanctions placed on Russia by the UK and the rest of the world, demand for other countries to produce oil increased dramatically.

The UK only imports 6% of its oil from Russia; however, due to increase in cost for oil globally, the expense has risen for us too.

Will the cost of petrol ever go back down?

The cost of petrol and diesel have already began decreasing, albeit very slowly.

Prices will ultimately depend on how the rest of the world deals with replacing the oil produced by Russia.

Once other countries can deal with the demand to fuel the rest of the world, prices will start to ease.

However, it is unlikely that prices will drop back down to the amount it used to be in the near future.

In an effort to try and make petrol prices more affordable for the people in the UK, the government announced a £37bn package to try and ease the affects of the cost of living crisis.

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.