An expert has told GB News that the Government should avoid placing a fuel cap on petrol and diesel prices, even as motorists struggle to deal with soaring costs.
The latest RAC data shows that drivers are paying 138.95p for petrol and £1.55 per litre of diesel, with prices increasing by 4.61 per cent and almost nine per cent respectively.
Fuel prices have been soaring since the United States and Israel began missile strikes against Iran at the end of February, with oil prices above $100 (£75).
While Labour said it would "review" any changes to the current rate of fuel duty, governments around the world have taken matters into their own hands to protect petrol and diesel drivers.
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South Korea said it would "swiftly implement" a price cap on petrol products, as confirmed by President Lee Jae Myung.
Thailand's Prime Minister called on citizens to avoid stockpiling fuel and said the government would cap the price of diesel for 15 days.
Anutin Charnvirakul said measures would be introduced to combat long queues at petrol stations, with the BBC reporting fuel shortages at some forecourts.
The founder of FairFuelUK, Howard Cox, spoke to GB News about the possibility of the UK Government introducing a price cap on fuel as it scrambles to find ways of helping drivers save.
An expert has dismissed plans to place a price cap on petrol and diesel costs
|GETTY/PA
He said: "I've long called for Governments to protect the economy from acute external influences, particularly the geopolitical impact of high oil prices.
"But a wrong fuel price cap could damage the viability of fuel retailers' businesses. The only fair way to help the economy and consumers is to reduce fuel duty based on a transparent calculation of oil price changes."
He noted that a sensible formula for such a cut would be if petrol and diesel prices hit a certain price, fuel duty would be cut by a set level.
Mr Cox added that a "VAT holiday" would also make sense since it is "already double taxed on fuel duty".
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He warned Chancellor Rachel Reeves that she would find it difficult to cut tax, even if it benefits businesses, inflation, GDP and jobs.
Other nations are taking steps to introduce new measures for the benefit of their motorists as the Iran crisis forces the price of oil, fuel and gas even higher.
The German government has announced that it will limit petrol stations across the country to only increase the price of fuel once a day.
Economic Affairs Minister Katherina Reiche confirmed that Germany would follow the "Austrian model" by limiting price hikes for hard-pressed drivers.
Petrol and diesel prices peaked across the UK in the aftermath of the Russian invasion of Ukraine in 2022 | PAThe Minister, from the Christian Democratic Union (CDU), added that filling stations would be able to cut prices as much as they want at any time of the day.
The latest data from the RAC suggests that drivers in Germany are paying 165p per litre for petrol, but only £1.58 for a litre of diesel.
There have been reports of German motorists travelling to Poland to benefit from cheaper fuel costs, according to Polish outlet TVP World.
The so-called "fuel tourism" has caused long queues at petrol stations as drivers could pay as little as 120p for petrol and 125p for diesel.