The rising cost of fuel is already causing serious issues for motorists in the UK, but it is predicted that things are going to get worse before they get better and it could be a bumpy few months ahead.
Average prices have already hit a record of 175.6p per litre, but industry experts predict that the worst is yet to come and motorists could be paying on average as much as £2 per litre before the end of summer.
The rising cost of fuel – along with the rising cost of living – is seeing many UK households like ours feel the squeeze.
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Many of us are having to adapt our lifestyle and habits as a way to save money, which can make life tricky. So what’s going on and why are things like fuel so expensive? This collaborative post explains it all in a nutshell!
Why is the cost of fuel so expensive?
So, why exactly is fuel so expensive right now? Essentially, the cost of fuel is rising because the cost of crude oil (used to make petrol and diesel) has increased. This is as a result of the sharp rise in demand for energy following the lifting of COVID-19 restrictions and suppliers have struggled to keep up with this demand. Of course, matters have only been made worse by the Russian invasion of Ukraine and the sanctions introduced on Russia – one of the world’s biggest exporters of oil.
The Economy
From an economical standpoint, the fuel crisis is worrying particularly when there are a number of other issues currently impacting the UK economy. In terms of fuel, the concern is that those that need fuel will be unable to afford it, which means that many people will be unable to work, which could also affect the delivery of goods. Many are able to work from home, but there are also many key industries where this is not possible and the fuel crisis could have a serious impact on these industries and the UK economy as a whole.
Struggling households
Of course, there are then problems for individuals as well. For the first time ever, the average car will cost over £100 to fill and this could cause serious financial difficulties when you consider the rising cost of living as well. Many people are having to make tough choices in their personal life when it comes to essentials like food, electricity and fuel. Gap insurance is important in times like these for financial protection – you can get gap insurance quotes from as little as £69 from Direct Gap.
The fuel crisis is a major cause for concern and things are going to get worse before they get better with experts predicting that motorists will be paying on average £2 per litre by the end of summer. When this is combined with the energy crisis and the rising cost of living, it means that it is a worrying time both for individuals as well as the UK economy as a whole.
Are you worried about the rising cost of living? I’d love to hear about your experience.
This is a collaborative post.
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