UK gasoline prices have hit a fresh record high of 127.21 pence/liter or $7.51/gallon, as a rise in both fuel duty and value-added tax came through at the start of the year.
Prices for gasoline in the UK are amongst the highest in the world and have been breaching previous highs in recent weeks following them on December 10 breaching the previous highs of 121.61p/liter or $7.17/gal set on May 12.
The pricing data was provided by analysts Experian Catalyst.
The VAT increase, up 2.5 percentage points to 20%, is expected to add 2.5 pence/liter or 14.75 cents/gal onto fuel costs, according to UK motoring organization, the Automobile Association, and the rise in fuel duty adds 0.76 pence/liter or 4.5 cents/gal.
The AA reacted to the latest tax rises by saying they will add around GBP10 or $15.59 to a tank of unleaded gasoline for the average motorist.
"Many car-dependent motorists and those on low incomes simply can't afford this. Prior to these tax hikes, two thirds of drivers were already cutting back on journeys, cutting back on other expenditure or cutting back on both." AA president Edmund King said.
Brian Madderson, chairman of RMI petrol, representing the independent retail sector consisting of around 6,000 sites said while the cost of product has inched forwards, 63% of the cost of gasoline is duty, with 33% the delivered cost of product leaving 4% for the retailer to cover all forecourt costs.
"It's not surprising more and more [retailers] are going out of business, on average around 400-500 retailers each year have been closing, and we don't see that reducing in the short term." The rise in UK gasoline costs, has also been linked to a rise in both crude oil prices and gasoline prices.
Front-month ICE Brent crude futures hit $96.17/barrel on Monday the highest the front-month contract has been since October 2, 2008.
This compares with front-month ICE Brent crude futures being around $85/b at the start of October and around $80/b a year ago.
Outright gasoline prices have also risen in recent months, the CIF Thames gasoline assessment for 10,000 mt cargoes was $839.50/mt on January 4 and $736/mt at the start of October. A year ago they were assessed at $733.50/mt.
Prices for gasoline in the UK are amongst the highest in the world and have been breaching previous highs in recent weeks following them on December 10 breaching the previous highs of 121.61p/liter or $7.17/gal set on May 12.
The pricing data was provided by analysts Experian Catalyst.
The VAT increase, up 2.5 percentage points to 20%, is expected to add 2.5 pence/liter or 14.75 cents/gal onto fuel costs, according to UK motoring organization, the Automobile Association, and the rise in fuel duty adds 0.76 pence/liter or 4.5 cents/gal.
The AA reacted to the latest tax rises by saying they will add around GBP10 or $15.59 to a tank of unleaded gasoline for the average motorist.
"Many car-dependent motorists and those on low incomes simply can't afford this. Prior to these tax hikes, two thirds of drivers were already cutting back on journeys, cutting back on other expenditure or cutting back on both." AA president Edmund King said.
Brian Madderson, chairman of RMI petrol, representing the independent retail sector consisting of around 6,000 sites said while the cost of product has inched forwards, 63% of the cost of gasoline is duty, with 33% the delivered cost of product leaving 4% for the retailer to cover all forecourt costs.
"It's not surprising more and more [retailers] are going out of business, on average around 400-500 retailers each year have been closing, and we don't see that reducing in the short term." The rise in UK gasoline costs, has also been linked to a rise in both crude oil prices and gasoline prices.
Front-month ICE Brent crude futures hit $96.17/barrel on Monday the highest the front-month contract has been since October 2, 2008.
This compares with front-month ICE Brent crude futures being around $85/b at the start of October and around $80/b a year ago.
Outright gasoline prices have also risen in recent months, the CIF Thames gasoline assessment for 10,000 mt cargoes was $839.50/mt on January 4 and $736/mt at the start of October. A year ago they were assessed at $733.50/mt.
