Economic Report 2021 - OGUK
UK EU -14% -11%
UK EU +19% +7.6%
costs, which Ofgem estimates could increase by £135 per household. Similarly, the UK (and others) are recording some of the highest petrol and diesel prices since 2013. These are largely linked to rising oil prices as well as constraints in domestic and continental production along with refinery output pressures being priced in. Alongside increased carbon prices, these various factors are all affecting the wholesale price of oil. As fuel duty and VAT have remained stable, the pressures within the wholesale market are expected to be borne in terms of cost to the end-user. OGUK anticipates that fuel costs are likely to continue to rise as policy moves towards decarbonising the transport sector and incentivising the use of low-carbon vehicles.
Figure 7: UK Fuel Price Breakdown
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