Cost of living: fuel retailers could be named and shamed as petrol hits £2

There is continued concern in Government that the 5p cut implemented by Chancellor Rishi Sunak in March is still not being reflected in pump prices at all filling stations.

The Prime Minister’s official spokesman said: “We are continuing to look at all possible options. Transparency may have an important role to play.

“It is important the public understand what actions each of the fuel retailers are taking and so we are considering what further options we can take in this area.”

It comes as experts have warned the price of petrol will hit £2 per litre this summer.

The RAC made the prediction in the face of rising oil prices and the weakening of the pound versus the US dollar.

Government figures show the average price of a litre of petrol at UK forecourts on Monday was a record 175.6p, up 6.6p from 169.0p seven days earlier.

Average diesel prices increased by 3.7p per litre over the same period, reaching 185.3p.

That was the largest weekly increase for both fuels since March.

RAC fuel spokesman Simon Williams said: “With analysts predicting that oil will average 135 US dollars a barrel for the rest of this year, drivers need to brace themselves for average fuel prices rocketing to £2 a litre, which would mean a fill-up would rise to an unbelievable £110.

“The oil price is rising due to increased demand for fuel across the world as China eases its Covid restrictions and America and Europe go into the peak summer driving season.

“All this combined with a weaker pound at 1.2 US dollars means wholesale fuel costs more for retailers to buy.

“The wholesale price of diesel is fast approaching 160p a litre which, when you add 7p retailer margin and 20% VAT, would take the pump price over the £2 mark.

“We strongly urge the Government to take drastic action to help soften the impact for drivers from these never-before-seen pump prices.”