We are apparently heading for a “perfect storm” of rising crude oil prices, closing refineries and pressure on supply, meaning diesel and petrol prices could reach a new high by Easter – Inflation for diesel is now almost double the Consumer Price Index of 3.6%.
It has been a while coming but the price of diesel has hit a new high, at 143.05 pence a litre, now this is bad news for us all as it will potentially have ‘knock on’ effects. Just to put it in perspective the previous high was 143.04p, in May 2011, at the height of the “Arab spring”.
It is thought the rise will have a knock-on effect on food prices due to increased delivery costs and interestingly on Thursday, Defra issued an update of its Food Statistics Pocketbook, which showed prices had risen by 25% since the start of the financial crisis in 2008.
The danger is that with some delivery and haulage firms adding a diesel surcharge to invoices, costs will rise faster than most people expect and potentially stoke inflation again.
Perhaps it is time for the Government to get a hold of this issue and sort out fuel prices once and for all?