This article was originally published in 2013. 10 years on, we have been looking at whether rising fuel prices are still forcing people into debt in order to use their fuel powered vehicles.
In 2013, we wrote:
- An AA/Populus survey of 23,824 members showed that motorists were pawning their possessions as they struggled to afford rising petrol prices.
- Others had gone into their overdrafts, borrowed money, used savings or simply ran out of fuel until payday.
- 1% of members had also pawned a possession to pay for fuel, especially in the 18-24 age bracket.
- Another 1% were paying back high interest short term loans, or using bank loans.
- North East England was cited as the area with most drivers using savings. Wales and NI were where most people had used their overdraft.
- Big petrol rises were affecting people from all sectors, including high managerial and professional roles.
- 15% of people said their spending plans have “nearly crashed off the road”
AA president Edmund King said: ‘Fuel price desperation has created a new and sinister twist to the phrase ‘driven into debt’.
Source: https://www.dailymail.co.uk/news/article-2413550/Motorists-pawning-possessions-struggle-afford-rising-petrol-prices-claims-AA.html
2023 update
2022 and 2023 have been particularly turbulent years for fuel prices, although the past 10 years have seen fluctuations, especially Spring 2016 and Winter 2018. Whilst the COVID-19 pandemic did lead to a decrease in fuel prices at the pumps, world events since such as the war in Ukraine and the lifting of global restrictions have led to a rise in demand and in price. Stressed supply chains see motorists paying nearly £2 a litre at present for diesel, and in some places up to £1.50 per litre for petrol – massive amounts compared to the £1.32 for petrol and £1.42 for diesel we saw in 2013, that caused such a stir.
The RAC Foundation have tracked fuel prices over time, in pence per litre (ppl), from May 2012 to current. You can see this all here: https://www.racfoundation.org/data/uk-pump-prices-over-time with a significant rise from 2021 onwards – in fact, prices for petrol at £1.91ppl recorded in 2021 were the highest ever seen in the UK! Edmund King, still president of the AA, called fuel prices “pump fiction” as prices on the forecourts soared even when wholesale prices were dropping.
Whilst prices have dropped since 2021, we are still seeing higher costs than 10 years ago. With this increase in fuel prices, as well as other rising living costs including electricity, gas, water and food, many are still being “driven to debt” in order to run their fuel powered cars, or not driving at all. Whilst this does mean a rise in public transport users (which is good for the environment), to own a vehicle and be unable to pay to fuel it is an untenable way for the nation to live long term. RAC Fuel Watch called for supermarkets to lower their forecourt costs in late 2022 to help relieve the burden on motorists, but so far only Asda have been seen to lower any costs significantly.
A 2022 study by Volkswagen Financial Services UK (VWFS) reported the following facts:
- 32% of the nation would be priced out of their daily commute due to rising fuel costs
- The age group of 18-24 year olds have been most affected, with 6 out of 10 drivers (63%) stating that they would not be able to afford their daily commute.
- In comparison, 24% of drivers aged 55-64 reported the same.
- 35% of commuters in Britain had considered changing jobs if it cut their commuting costs down.
- 24% said they would consider car-sharing.
- 36% have admitted to cancelling social plans that involved driving somewhere to save on using fuel.
- There has been a 17% rise in people who would think it acceptable to charge passengers fuel money, up to 50% across the country compared to 33% prior to our current cost of living crisis.
- Regionally, those living in the Midlands are the most likely to ask for fuel money (53% of all respondents).
Source: https://customer.vwfs.co.uk/volkswagen-financial-services-uk/media/cost-of-living-crisis-fuel.html