Experts are warning that drivers could see far higher petrol and diesel prices at the pumps in the coming years as a result of a new European Union directive.
From 2027, the European Union will implement a new carbon emissions trading system for transport and heating fuels, which has proven to be controversial.
According to Agora Energiewende, a German think tank, drivers across the continent could see the price of petrol and diesel prices rise in the near future.
It has warned politicians across Europe that measures need to be introduced to protect people from massive increases in cost when the plans are rolled out.
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A new report has warned that fuel prices could spike in the coming years
PA
The report – EU policies for climate neutrality in the decisive decade – suggests that the price of petrol could jump by 38 cents (32p) per litre from the beginning of 2027 compared to 2026.
Prices could jump to more than €200 (£170) per tonne of CO2 in 2027, prompting the need for further climate protection measures, Clean Energy Wire reported.
The report stated: “As adopted, the emissions cap established within the two emissions trading schemes would de facto end the use of “unabated” fossil fuels in the covered sectors by 2039 and 2044, respectively.
“Even before these dates, fossil fuel prices are likely to increase significantly, rendering fossil fuel usage progressively uncompetitive – especially coal and oil.
“Despite these recent global commitments and policy developments under the EU Green Deal, the EU has not yet made a formal commitment or developed a plan for a complete transition away from fossil fuels.”
The report warned that the lack of commitment could prove to be “potentially costly” and create “disruptive consequences for consumers and workers”.
According to RAC Fuel Watch, the price of unleaded petrol is currently 161p per litre in Germany, while diesel costs just £1.43.
In comparison, drivers in the UK are paying an average of £1.50 for unleaded petrol at the forecourts and 157p per litre for diesel.
This means that motorists in the United Kingdom have the most expensive diesel costs across the continent, with drivers in Malta benefitting the most with an average diesel price of just £1.04, which also has the lowest petrol price of £1.15.
The UK Government has been taking steps to lower the price of petrol and diesel at forecourts to help drivers save money amid the cost of living crisis.
This includes a 12-month extension to the 5p fuel duty cut, which was first introduced in 2022 following the Russian invasion of Ukraine and subsequent price hikes.
Drivers have also been buoyed by the promise of a centralised fuel price checker – dubbed PumpWatch – which aims to publish the cost of fuel at all filling stations around the country within 30 minutes of any change.
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Petrol and diesel prices peaked in June and July 2022 PAFuel experts and MPs within the Government believe these measures will lead to greater savings at the pump for drivers, as well as promote competition among forecourt owners and major retailers who have been accused of overcharging motorists.
Data from the Competition and Markets Authority found that some supermarkets charged drivers 6p per litre more than they needed to between 2019 and 2022.
It has been estimated that this led to £900million in extra costs in 2022 alone – equivalent to around £75million per month.