Why is the cost of petrol and diesel rising by so much?

Petrol costs have broken yet another record, with the average price for unleaded in the UK hitting 158.20p per litre, the latest data shows.

Figures from the RAC show that diesel prices have risen, shooting up to 165.24p per litre on Tuesday.

That's up nearly 3p on Monday’s 162.3p - the largest jump on records dating back to the year 2000, the RAC said.

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As the prices continue to rise, more and more people will be worrying about how they’re going to be able to get from A to B.

Motorists have been warned to expect further rises in price - but why does the cost keep going up?

There are a number of factors at play here. Firstly, the cost is rising due to the ever-increasing price of oil production which has grown by 60 per cent in the last 12 months.

It has also been impacted by a growing need for crude oil, which had collapsed at the start of the pandemic, but is now dramatically rising due to the surge in post-pandemic travelling - as well as the Russian invasion of Ukraine.

More recently, Business Secretary Kwasi Kwarteng announced on Tuesday the UK will phase out the import of Russian oil and oil products by the end of the year in a move matched by US President Joe Biden.

The moves were praised by Ukrainian President Volodymyr Zelensky who said they sent a “powerful signal”.

But experts have explained how this, too, will impact the cost of petrol prices.

Robert Buckley, an energy analyst at Cornwall Insight, told the BBC although the UK's ban was “largely symbolic” because only 8 per cent of its energy comes from Russia, it would likely combine with other factors and push up prices.

“This is a global market and you’ve got to replace that displaced supply somehow,” Mr Buckley told the broadcaster.

“At the margin, this decision will act to support oil prices which are already extremely high.”

Nathan Piper, an analyst at Investec, told the BBC the EU’s decision to reduce its reliance on Russian gas could also impact the UK.

But the Prime Minister said the UK was “less exposed” than some European nations when it came to restricting Russian oil – the European Union imports more than a quarter of its oil from Russia.

Fuel costs have a hit another record high (PA)

Meanwhile, Conservative MP and former Housing, Communities and Local Government Secretary Robert Jenrick told BBC Newsnight it could be “the most difficult economic year we’ve seen in my lifetime”.

Speaking to broadcasters in London, Mr Johnson accepted the decision to target Moscow’s oil would not hit the Kremlin’s regime immediately, with Ukraine continuing to face assault, but said it would add to the “extreme” sanctions already levied.

No UK petrol demand comes from Russia, nor heating or fuel oil but 18 per cent of the total demand for diesel comes from Russia, according to the Department for Business, Energy and Industrial Strategy.

Ministers were considering steps that could lead to a fracking rethink in the UK after committing to phasing out imports of Russian oil by the end of the year.

Amid concerns over soaring energy costs, it was understood two sites belonging to oil and gas company Cuadrilla in Lancashire may be handed over to the Royal Geographical Society rather than being concreted over.