Staycation costs rocket as petrol prices hit 8-year high and inflation rises
Staycations could prove 'very expensive' for millions of families this summer, warns the RAC, because of the continued rise in petrol prices.
Escalating food and petrol costs are said to be behind today's further rise in inflation, which is now at its highest for almost three years.
The Office for National Statistics (ONS) said the Consumer Prices Index (CPI), which measures the change in price for goods and services, has risen to 2.5% from 2.1% the previous month, and further away from the Bank of England’s 2% target.
Dearer second-hand cars, food, clothing and footwear alongside the ongoing increase in the cost of fuel are all being attributed to the jump.
Petrol is now at its highest price for nearly eight years, after eight straight months of increases at the pumps.
The average price of a litre of unleaded has risen by 2.7p to 132.1p for July - a price which has not been seen since October 2013. While diesel costs have also risen - up 2.5p from 131.7p to 134.3p, which is the most expensive price in two years.
With petrol increasing 18p since November - the rocketing rise has added an extra £10 to the cost of filling up a 55-litre family car, says the motoring organisation.
Lockdown restrictions and continued home working has meant many drivers may not currently be using their vehicles as much as they were prior to the pandemic, allowing petrol prices to in many cases creep up unnoticed.
But with a summer of staycation trips on next month's calendar for many families, combined with existing pressures on household incomes, RAC fuel spokesman Simon Williams said car owners could find things are very expensive in the next few weeks. Scroll down to take our poll
He said: “June proved to be a shocking month for drivers with not just the eighth straight monthly rise at the pumps, but a return to 132p a litre petrol –something we haven’t seen since October 2013.
“And if an 18p a litre hike in cost over eight months isn’t bad enough it’s hard to see the increases coming to an end as the price of oil seems to be going up and up, with $6 being added to a barrel in June alone. Compared a year ago oil is now $35 more expensive. What’s even more worrying is that some analysts are predicting an oil deficit by the end of the year, which could mean further relentless price rises in the coming months.
“If oil and, in turn, fuel prices continue to go up the UK’s staycation summer could end up being very expensive for millions of people."
Transport policy and research organisation the RAC Foundation, which is independent of RAC motoring services, has issued a very similar warning.
Director Steve Gooding said alongside rising costs for accommodation, driven up by this year's high demand to stay closer to home, petrol prices will also encroach on family budgets.
He said: "It looks like our staycations have just got that bit more expensive. On top of huge hikes in the cost of holiday accommodation across the UK, motorists filling up the car for their family getaway will be faced with petrol prices at an eight-year high.
“There’s also the chance of worse to come with oil prices continuing to nudge upwards.”
Last month, motorists were encouraged to check if there car was compatible with a new sort of fuel. E10 is replacing E5 unleaded but more than 600,000 older vehicles will be unable to use the petrol.