One of the most notable is that of fuel, which hit a 40-year high as petrol cost Liverpudlians as much as 191.53p a litre and 197.3p for a litre of diesel.
Good news is that experts are expecting the price of fuel to finally tumble down to more affordable levels, but when is this expected to take place in Liverpool? How much will the price drop? Here is everything you need to know.
Why has fuel been so expensive in Liverpool?
At the peak of the fuel crisis in the UK, people believed that Russia and Vladimir Putin’s conflict with Ukraine was the reason behind the inflating prices - however, this is not the case.
Instead, the reason behind the sharp increase is down to the price of crude oil, which is a resource used to make petrol and diesel.
During the Covid-19 pandemic, the cost of crude oil was at an all time low as the demand for energy collapsed.
However, as life slowly got back to normal, the demand for crude oil returned and suppliers have struggled to keep up with it.
This, partnered with the fact that crude oil is paid for in US dollars - with the British pound currency weak in comparison - this has led to making fuel that much more expensive.
What makes up the price of petrol and diesel?
A lot of different things make up the final price of a litre of petrol or diesel in Liverpool, whether it be VAT, fuel duty and much more.
Here is what makes up the final price of a litre of fuel in Liverpool:
- 45-percent: Cost of petrol or diesel to the supplier
- 29-percent: Fuel duty
- 17-percent: VAT
- 7-percent: Cost of biofuel content
- 2-percent: Profit for the retailer
- 1-percent: The supply and delivery of the fuel
Will the price of petrol and diesel fall in Liverpool?
Much to the benefit of Liverpudlian bank accounts, the price of fuel in Liverpool is expected to plummet.
This is according to motoring group AA, who have said that the cost of filling up your car will be £10 cheaper as wholesale prices are falling.
Luke Bodset from AA issued the following statement: “Wholesale petrol’s trajectory, if sustained, would lead to savings from the record highs, providing the fuel trade is prepared to pass them on.
“So far this morning (Tuesday, 19 July) even with oil rebounding, wholesale petrol remains below 80.5p a litre.”
“The problem is that, in many places [forecourts], the price cuts are quite simply not happening despite more than six weeks of falling costs.”
Wholesale petrol prices peaked at £1-per-litre at the start of June, but has since been dropping below 80p a litre.
When will the cost of fuel come down?
The AA are predicting prices of petrol and diesel to tumble in Liverpool over the course of the next two weeks.
A price decrease of at least 20p has been predicted for Liverpudlians at the pump.
Where are the cheapest fuel stations to buy fuel in Liverpool?
With the cost of living crisis crippling families not just in Merseyside but across the UK, LiverpoolWorld has been updating a list of the cheapest filling stations in the city to buy petrol and diesel on a daily basis.
At the time of publication, the lowest price within a 5-mile radius of the city centre is 184.7p for a litre of petrol and 191.9p for a litre of diesel.
For more information, please take a look at the article.