The outlook is bleak for motorists amid concerns the cost of filling up a tank could hit new highs due to the tension in Iran and the collapse of the Coryton refinery in Essex.
The closure of one of Britain’s biggest plants, after Swiss-owned parent company, Petroplus, went into administration, has added further pressure to an already difficult market.
This immediately sent prices up at the pumps – prompting some drivers to begin panic buying.
More hikes in the pipeline
At the turn of the century, petrol prices were about 77p per litre, according to insurer Hastings Direct, but have nearly doubled in 11 years – and are set to go on rising.
Brian Madderson of RMI Petrol, which represents petrol retailers and forecourt operators, warned that higher wholesale prices for diesel and petrol are pushing prices up and up.
“We could see diesel over the 143.04p per litre record of high of May 2011,” he warns.
There is also speculation that things could get worse, and that both petrol and diesel could go crashing through the £1.50 barrier.
Rising cost of motoring
All of this will pile more pain on motorists who are already struggling with rising fuel prices, and higher car insurance premiums – not to mention the costs of repairs, maintenance, vehicle tax and breakdown cover.
According to the latest Confused.com car insurance price index, the cost of comprehensive car insurance rose 4.9 per cent in 2011, with an average policy costing £844. Some areas of the UK suffered huge rises, with Bradford experiencing a 17.1 per cent hike in motor insurance in the same period. Find out more about how much people are spending on car insurance in your area.
Separate findings from insurer Hastings Direct show 78 per cent of drivers say the rising cost of motoring has affected how often they drive, with 1 per cent having already given up their car to cut household bills, and one in five planning to give up their car if petrol hits £2 per litre; more than one in 10 say they plan to buy a hybrid or electric car at this price point.
“Motorists are clearly feeling the pressure on their finances,” says Tobias van der Meer from Hastings Direct. “They will not be able to continue paying higher and higher prices.”
But while many drivers fear being priced off the roads, there are plenty of steps you can take to drive costs down – and beat the fuel price hikes.
Drive economically
Big savings can be made by driving your car efficiently to get the most out of your fuel.
Simple tips include selecting the highest gear possible without labouring the engine, and driving smoothly.
“Accelerate gently and read the road ahead to avoid unnecessary braking,” says Ian Crowder from the AA. “Decelerate gradually by releasing the accelerator in time, leaving the car in gear.”
Don’t start the engine until you’re ready to go, and try to keep the car moving at all times, as stopping then starting uses more fuel.
Lighten the load
Removing the roof rack and taking unnecessary junk out of the boot, will also save you money, as this additional weight adds massive wind resistance to a car, making the engine work harder.
“If you don’t need it, take it off,” says Crowder. “If you do need it, pack carefully to reduce the extra drag.”
Maintain your car correctly
To maintain engine efficiency, get the car serviced regularly.
“Make sure you use the correct specification of engine oil,” says Crowder. “Check tyres regularly and before long journeys, as under-inflated tyres create more rolling resistance and use more fuel.”
Don’t leave your air con on all the time, as it increases fuel consumption, and especially at low speeds; also turn off heated rear windscreen, demister blowers and headlights when you don’t need them.
Plan ahead
Plan journeys to ensure you don’t waste petrol by going the wrong way by using a Sat Nav or route planner. Spend a few minutes checking the traffic news before you go and try and combine different appointments so you don’t have to make so many short journeys.
Shop around before filling up
A simple way to cut costs is by doing a little research before filling, using a site such as Petrolprices.com, which lets you find the cheapest petrol station in your area or by using a petrol price calculator.
Also look out for supermarket deals and discounts.
Think before you drive
Finally, before jumping behind the wheel, ask yourself if using your car is really necessary – or whether you could walk, cycle or take public transport instead?
Findings from Hastings Direct show three quarters of drivers have generally cut down on car use already, with nearly half cutting back at least 25 miles each week, a third by 50 miles per week, and more than 7 per cent by in excess of 100 miles a week.
“Taking the right actions, such as reducing mileage and driving safely, can really help motorists cut the cost of their insurance and their fuel bills,” adds van der Meer.
You can get a break down of how much you spend on petrol with our fuel cost calculator. Give it a try for yourself:
