The price was up 2.2p from Monday’s 178.50p to 180.73p per litre. This means it will soon cost £100 to fill up the average car, further exacerbating the cost-of-living crisis that many households are currently facing.

The price of diesel also rose by almost 1.5p to another record of 186.57p, with drivers of diesel cars already paying £102.61 to fill up a full tank of fuel.

“These are unprecedented times in terms of the accelerating cost of forecourt fuel. Sadly, it seems we are still some way from the peak,” commented RAC fuel spokesperson Simon Williams.

“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 [...] We strongly urge the government to take drastic action to help soften the impact for drivers from these never-before-seen pump prices."

Ford’s investment will help maintain approximately 500 jobs at the plant in Halewood, Knowsley, which currently produces transmission systems for petrol and diesel vehicles. The US car manufacturer is also set to receive support worth approximately £30 million from the UK government. 

The global car industry is currently undertaking the biggest period of upheaval in its history as it shifts to batteries from internal combustion in a bid to increase sustainability within the industry. By 2024, the Merseyside factory will generate 250,000 electric drive units, components that include electric motors and power electronics. 

However, the upheaval in the UK has raised questions over the future of several automotive plants owned by foreign multinationals that produce petrol or diesel car parts. In 2019, the number of employees at the Ford Halewood plant dropped from 650 to 500 through natural attrition. 

By 2030, Ford plans for all the vehicles it sells in Europe to be electric, matching up with the UK government’s plan to end the sale of pure petrol and diesel cars that year. Ford also plans to make two-thirds of commercial vehicle sales all-electric or plug-in hybrid by 2030.

President of Ford of Europe, Stuart Rowley said the Halewood plant would play a big role in the company’s “very ambitious” plans. However, Rowley also said that government action was needed to improve charging infrastructure and warned against a potential plan to slash the level of grants for electric vehicles. 

This petrol and diesel ban could help cut car emissions to 46m tonnes of carbon dioxide by 2030, down from an equivalent of 68 MtCO2e (metric tons of carbon dioxide equivalent) emitted today.

The sale of electric vehicles has increased in the UK by 185.9% year on year; however, the majority of cars that are imported from other countries still have an internal combustion engine (ICE) – meaning they are either petrol, diesel, or hybrid. Around 26 countries are huge exporters of ICE vehicles to the UK, including the Czech Republic, Turkey, South Africa, Poland, and Italy. In the Czech Republic, the car industry accounts for 9% of the country’s gross domestic product (GDP). 154,468 petrol and diesel models were exported to the UK in 2019.

Challenges posed

While yes, the move to electric vehicles will drive down global emissions, which is becoming a crucial consideration for governments and populations worldwide following the United Nations’ ‘code red for humanity’ climate change warning, it will be expensive.

Road Haulage Association Managing Director Rod McKenzie told Sky News that alternative fuels for transport such as hydrogen and electricity will be too costly or won't offer enough range. For such a drastic shift to a different method of fuel, there needs to be less doubt and more certainty for something that is hugely relied on.

McKenzie commented: "This proposal is unrealistic. Alternative HGVs don't yet exist. We don't know when they'll exist, and we don't know how much they'll cost, and it's not clear what any transition will look like.

"So this is blue-sky thinking way ahead of real-life reality. For many haulage companies, there are big fears around the cost of new vehicles and a collapse in the resale value of existing ones."

Businesses involving heavy goods vehicles will be faced with many significant challenges – it will likely take a while for the price of alternative HGVs to be driven down while we wait for research and development to innovate them and make them cheaper to manufacture and run. Transitioning an entire fleet to alternative fuel won’t be cheap. However, there is a huge need for the transport industry to be electrified – according to the UK Government, 79% of domestic freight was moved by road in 2019, and the transport was the largest sector for emitting domestic greenhouse gases.

Greg Archer, UK Director of the European green transport campaign group Transport and Environment, argued for the ICE vehicle ban and the ever-growing need for this ambition. He said: "This plan is a milestone in the shift to a more sustainable UK transport system. The decision to only use zero-emission road vehicles – including trucks – by 2050 is world-leading and will significantly reduce Britain's climate impact and improve the air we breathe."

In a bid to help businesses, seven major British companies have joined forces to accelerate the transition to hybrid and electric vehicles – some of which have some of the largest commercial fleets in the UK.

Cost advantages for business

Businesses can save money on fuel – a report by British Vehicle Rental and Leasing Association report found that electric vehicles cost between 2p and 4p a mile whereas the equivalent in diesel costs 12p per mile. Tax refunds are also available for the purchase of electric vehicles, meaning you can relieve some costs.

The government is offering grants towards the cost of a new van of up to 20% and 75% towards the cost of installing a rapid charge point at your place of business. Congestion charges such as ultra-low emission vehicles (ULEVs) have been introduced in some cities to achieve cleaner air to breathe. While a great initiative for local ecosystems, it makes some cities impractical or expensive to drive through with ICE vehicles. All of these considerations make van leasing deals seem a more attractive prospect for businesses relying on fleets.

What do you think about the plan to ban the sale of petrol and diesel vehicles? Is this giving you the push you need to adopt greener alternatives in your life?

Sources

https://www.autoexpress.co.uk/news/108960/2030-petrol-and-diesel-ban-what-it-and-which-cars-are-affected

https://www.theguardian.com/environment/2020/nov/18/uk-ban-on-new-fossil-fuel-vehicles-by-2030-not-enough-to-hit-climate-targets

https://www.autocar.co.uk/car-news/industry-news-environment/analysis-uk%E2%80%99s-ice-ban-have-global-impact

https://www.cnbc.com/2021/08/09/ipcc-report-un-climate-report-delivers-starkest-warning-yet.html

https://news.sky.com/story/climate-change-sale-of-new-diesel-and-petrol-hgvs-to-be-banned-after-2040-12355349

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/945829/tsgb-2020.pdf

https://www.openreach.com/news/major-british-companies-come-together-to-accelerate-the-electrification-of-transport-in-the-uk/

https://www.coversure.co.uk/redditch/blog/couriers-time-to-ditch-the-diesel

In a statement on Tuesday, the Labor Department reported that its consumer price index rose by 0.6% last month, the largest net monthly gain since August 2012. The price increase follows an easing of 0.1% in May, and exceeds the rise of 0.5% predicted by economists polled by Reuters.

The increase coincides with the reopening of non-essential retailers and other businesses throughout the country, and continued anti-coronavirus stimulus spending that has driven the US budget deficit as high as $3 trillion over the past 12 months.

A hike in the cost of gasoline accounted for over half of the resurgence in consumer spending, with energy prices as a whole rising by 5.1% and gasoline itself rising by 12.3%. However, gas pump prices remain 23.% lower than they were a year ago.

Having risen by 0.7% in May, food prices also saw a further increase of 0.6% in June, contributing to the shift in the Labor Department’s index. Core inflation also rose by 1.2%, far below the Federal Reserve’s target of 2% in annual inflation gains.

It is yet unclear how the consumer price index will be affected by the decision of several states to reverse their reopening plans in late June and early July following a resurgence in COVID-19 cases.

The US economy has been struck dramatically by the COVID-19 pandemic, with the economy entering a recession in February and April seeing the greatest single-month fall in consumer spending since the 2008 financial crisis.

In a statement on Monday, BP confirmed that it plans to sell its global petrochemicals business to INEOS for a total consideration of $5 billion.

In addition to meeting BP’s goal of divesting $15 billion worth of assets, the move fits new CEO Bernard Looney’s wider plan of radically overhauling BP from an oil giant into a key player in the clean energy market. Looney lauded the petrochemicals sale as “another significant step” towards reinventing BP as a company that can survive the energy transition.

“Strategically, the [petrochemical business’s] overlap with the rest of BP is limited and it would take considerable capital for us to grow these businesses,” the CEO said in a statement. “As we work to build a more focused, more integrated BP, we have other opportunities that are more aligned with our future direction.”

In a statement of his own, INEOS’s billionaire founder Sir Jim Ratcliffe said: “We are delighted to acquire these top-class businesses from BP, extending the INEOS position in global petrochemicals and providing great scope for expansion and integration with our existing business.”

BP’s petrochemical interests have been struck hard by 2020’s sharp decline in oil prices, leading to a write-down of between $13 billion and $17.5 billion in its earnings for Q2.

As part of the agreed terms of the sale, INEOS will pay a deposit of $400 million and a further $3.6 billion upon competition, with the remaining $1 billion to be paid in instalments between March and May 2021.

Following the recent government announcement of plans to prohibit all petrol and diesel vehicles by the year 2040, Britain is weighing up the idea of switching to ‘green’ driving more than ever before.

New research from leading comparison website MoneySuperMarket has delved into the mind of the consumer to determine just how viable this switch is. The research reveals factors such as the true cost of making the switch to electric driving versus driving a petrol or diesel car. It also explores the number of charging points currently available in major UK cities, a key factor in the viability of the plan to turn the UK electric.

The research also highlights the lack of knowledge currently being shared on the benefits of driving electric and public concerns about the feasibility of the 2040 ban.

Is the British Public Prepared?

With 49% of the British public stating that they have never considered purchasing an electric or hybrid car, it appears that education and pricing are crucial factors in the public’s apprehension to go electric. Some of the key findings from the research include:

51% of people surveyed stated price is currently the biggest barrier to them buying an electric or hybrid car.

Nearly 30% of people don’t buy electric or hybrid cars due to lack of knowledge of how they work.

62% of people don’t know that the Government offers discounts and grants on buying an electric or hybrid car

The True Cost of Driving Green

Beyond public opinion, cost is a major factor in the sustainability of the plan to move to electric and a concern for the public as a whole. Fundamental findings on the cost of buying and running electric, petrol and diesel cars revealed that, although cheaper to run, electric cars are not the most cost-effective motor to own overall. Some findings on the cost of running each car type include:

While the upfront costs of petrol vehicles were the lowest, the average running costs of an electric car are 20% cheaper than diesel and petrol engines, with an average saving of £2,109 across 6 years.

Filling up your petrol or diesel car is 5 times more expensive than electric.

Petrol cars boast the lowest average insurance premium (£697.19), whilst electric remains the most expensive to insure at £923.

If drivers switch to electric in 2018, they’ll save almost £8,000 on running costs by the time the ban is enforced.

Taking Charge in 2040

The government’s plan to turn the UK into a nation of electric car drivers rides not only on the cost of the cars over their lifetimes, but also on the feasibility of fuelling these vehicles. Having an appropriate number of public charging points will be key for the success of Britain’s electric switchover.

Data collected on the number of electric car charging points available to drivers in UK cities bring into question whether the UK as a whole is truly ready for an electric revolution. Whilst the capital performed well, with 210 charging points in Central London, other cities fell short. Large cities such as Liverpool and Cardiff had fewer than 10 raising questions over the preparedness of major UK cities for 2040.

For the full details on the true cost of driving green and how the UK is shaping up, click here to see the full research.

Methodology

To create an average for each fuel type, an average was taken of 3 of the top selling cars from petrol, diesel and electric respectively. Data for the upfront costs of each of the 9 vehicles were taken from their brand’s site as well as costs of servicing, road tax and MOT prices. The ‘lifetime’ was measured as 6 years with the average mileage of 7,900 miles a year entered onto the site nextgreencar.com to determine the fuel costs. The overall costs for each model were made into 3 separate averages for electric, petrol and diesel fuel types. The models used included:

-    Ford Fiesta Style – Petrol
-    Volkswagen Golf – Petrol
-    Ford Focus – Petro
-    Skoda Superb Estate – Diesel
-    Vauxhall Astra Hatchback – Diesel
-    BMW 3 Series Saloon – Diesel
-    Renault Zoe Signature – Electric
-    Nissan Leaf Acenta – Electric
-    BMW i3 – Electric

In order to find out the number of electric car charging points per city, the site www.zap-map.com was used.

(Source: MoneySuperMarket)