Pump prices inched up just 0.3 pence to 135.19 pence ($1.84) per liter for unleaded petrol over the week through Monday, according to figures published Tuesday by the Department Business, Energy and Industrial Strategy.
The figures ease concerns that supply chain disruptions will feed through to consumer price inflation. While oil has risen to a three-year high of $80 a barrel, the cost of fuel at the pump has remained stable in the past few weeks. That’s partly because the tax the U.K. levies on fuel is one of the highest in the world.
The Bank of England expects inflation across the U.K. economy to leap over 4% this year, mainly because the cost of energy is surging. Natural gas and electricity prices have more than doubled in the past three months amid supply shortages accompanying the end of coronavirus lockdowns across Europe.