Drivers in South Wales have even more to worry about, as petrol prices that have remained ‘stubbornly’ high have come to threaten them as much as heightened car insurance rates.
Cheap car insurance provider AA recently reported that, despite world oil prices falling, the average price of petrol at the pump has remained high. The average price per litre, 134.51p, is only 1p less expensive than it was in mid-September, when it stood at 135.61p, the AA said.
However, South Wales petrol prices continue to be highly volatile, as an Asda in Cardiff Bay is offering petrol at £1.30 a litre, while a Gulf petrol pump located near Radyr runs as high as £1.48 per litre. These high petrol prices, combined with rocketing motor car insurance premium prices, have even begun to make it too costly for many drivers to keep their cars on the road, official figures say.
Chancellor George Osborne has been facing increasing pressure to bin the fuel duty rises that are planned for the summer of 2012, as they could see petrol prices rise by as much as 8p per litre. 4p of this increase would be put into effect this coming January, with the other half slated to be instituted in August of 2012, but dismantling the increases would result in a £3.5 billion shortfall, says the Treasury.
However, retailers association RMI Petrol’s chairman has written to the Chancellor concerning the issue. The chairman has demanded that the duty increases be scrapped, lest it place an undue burden on a populace that has already been facing financial hardship due to a sluggish economic recovery in the wake of the worldwide recession.