Fuel shortages ease in London and south-east, as petrol prices hit eight-year high – business live
Rolling coverage of the latest economic and financial news
- Latest: Fewer petrol stations dry in London and South East today
- Pig cull begins amid shortage of abattoir workers
- Fuel prices hit eight-year high.. and car sales tumble
- Services firms lift prices at fastest pace since at least 1996
- Boris Johnson says shortages result of ‘giant waking up’ of economy
UK car registrations may not show any real recovery until next March, predicts Seán Kemple, Managing Director of Close Brothers Motor Finance.
Kemple says the shortages of vehicles on offer, due to production problems, means some nearly-new cars are changing hands for more than a new one [with second-hand car prices pushing inflation up].
“September 2020 was an indisputably challenging year for new car sales, yet we’ve seen another 34% drop in sales year on year for this month. The ongoing chip shortage, compounded by rocketing manufacturing costs, continues to present challenges for dealers, manufacturers and consumers.
“Consumer demand is there, but choice is stifled. Buyers are turning to ‘nearly new’ options, a growing trend where vehicles up to 12 month old are outstripping the price of their new counterparts. This is something we’ve never seen before in the car market and will likely never see again.
“Despite the ongoing supply chain issues, it’s encouraging to see the continued growth of zero-emission vehicle registrations, proving that they are fast becoming the vehicle of choice for individuals and businesses.
Government and manufacturers must continue to work together to ensure that the supply of EVs continues to meet demand as the UK accelerates its electrification ahead of the 2030 ban on ICE vehicles.
