Petrol prices hit new high as urgent review ordered

Petrol prices hit a record 185p per litre on Sunday, as ministers asked for an urgent review into whether the fuel duty cut is being passed on to drivers.

With wholesale petrol prices falling, the AA said price rises at stations "should be grinding to a halt, at least temporarily, by the end of the week".

Soaring fuel prices have been driven by the war in Ukraine and moves to reduce Europe's dependence on Russian oil.

Motoring groups have called on the government to do more to help drivers.

The RAC said a further cut to fuel duty would be "very welcome, albeit overdue".

"The speed and scale of the increase is staggering with unleaded going up 7p in a week and diesel by nearly 6p," the group's fuel spokesman Simon Williams said.

"This must surely put more pressure on the government to take action to ensure drivers don't endure a summer of discontent at the pumps."

Meanwhile, diesel prices fell back slightly on Sunday to 190.92p per litre, after reaching a new record of 191.03p per litre on Saturday.

It means the average cost of filling a 55-litre family car with diesel is now £105.01, while the price for a petrol car is £101.77.

Retailers base their prices on the wholesale cost of petrol and diesel but there is typically a two-week lag for pump prices to reflect any changes in wholesale prices due to the time it takes for fuel to reach forecourts.

Unlike petrol, the wholesale price of diesel is continuing to increase.

The AA's fuel price spokesman, Luke Bosdet, said: "Diesel's relentless surge in costs remains a nightmare, with its knock-on impact for the cost of delivery of goods and services, and therefore inflation."

Business Secretary Kwasi Kwarteng has asked the Competition and Markets Authority (CMA) to look at whether the 5p fuel duty cut is being passed on to drivers quickly enough, as well as whether there are local variations in prices.

The Petrol Retailers Association, which represents independent fuel retailers, has said it welcomes "transparency regarding fuel pricing" and will cooperate with the CMA's investigation.

The association says its members have passed on the fuel duty cut after it was announced in March, but wholesale fuel prices have continued to rise since then, leaving retailers "operating on extremely tight margins".