The Ukraine war and a weaker pound have made 2022 a ‘terrible year for drivers’ with fuel prices at their ‘most volatile’ on record, according to a study published on Tuesday (December 6).

After the government cut fuel duty for petrol and diesel by 5p per litre in March, the Competition and Markets Authority (CMA) launched an investigation to make sure the savings were being passed on at the pumps.

Today, the independent government watchdog revealed its ‘emerging analysis’, saying it had found that 2022 had been the most volatile year on record for fuel prices, with an increase of 50p per litre recorded between January and July, before dropping by 31p for petrol and 14p per diesel.

The CMA also found the gap in prices between petrol and diesel was the widest ever at 24p per litre – said to be ‘largely due to western Europe’s reliance on imports of diesel, but not petrol, from Russia’.

Sarah Cardell, interim chief executive at the CMA, said: “It has been a terrible year for drivers, with filling up a vehicle now a moment of dread for many. The disruption of imports from Russia means that diesel drivers, in particular, are paying a substantial premium because of the invasion of Ukraine. A weaker pound is contributing to higher prices across the board, too.

“There are no easy answers to this. The question for the CMA is whether a lack of effective competition within the UK is making things worse. Although it is only a small proportion of the overall price, the increase in margins for many fuel retailers over the last few years is something we need to investigate further.”

It also found evidence of ‘rocket and feather’ pricing, whereby prices rise like rockets and fall like feathers, which had particularly happened with diesel. The CMA said it would “investigate this further”.

But although the CMA said it had found “no evidence” of this rocket and feather pricing before 2022, the RAC disagreed.

Commenting on the study, Simon Williams, RAC fuel spokesman, said: “While it’s encouraging the CMA has found evidence of ‘rocket and feather’ pricing taking place this year, we believe there was clear evidence of it happening this time last year and in 2018 and 2019.

“Volatility has unquestionably been an issue in fuel pricing since Russia invaded Ukraine, but when wholesale prices trend down for weeks at a time, drivers should see pump prices do the same at a similar rate – unfortunately, our data shows that this is not often the case.

“What’s happening now – as it was last December – is a massive downward shift in the price of wholesale fuel with a slow dropping of forecourt prices. Consequently, drivers are set for a more expensive time on the roads this Christmas than they should be.”

Hyundai is investing £1m into paying for up to 25,000 children in the UK to go on school trips they might otherwise miss out on because their parents can’t afford them.

The South Korean manufacturer says school trips are “in decline” but are an “essential part” of schooling. It has announced the funding as part of its ‘Great British School Trip’ programme for children aged between seven and 11.

A study of 1,600 UK parents, carried out on behalf of Hyundai, found that 52 per cent of children hadn’t told their parents about an upcoming trip, with 54 per cent of parents saying it was because their children were concerned they wouldn’t be able to afford it.

A similar study of 433 teachers revealed that 61 per cent were less likely to plan trips than five years ago, while 56 per cent of teachers who’d tried to organise school trips in the past year had had them cancelled or not approved.

Hyundai says 200 venues have shown their support for the initiative so far, including RAF Museum Midlands, the Youth Hostels Association and the Disney Theatrical Association. The car manufacturer says the trips will support the curriculum, covering subjects such as art, science, engineering and maths.

Ashley Andrew, managing director of Hyundai Motor UK, said: “School trips should provide some of the most exciting and memorable times for our young people. They help to bring their learning to life, encourage greater engagement and inspire their future ambitions. I know that’s what they did for myself and for my children.

“I firmly believe that they are an essential part of our young people’s development and something that every child should have access to. As a company that strives to support humanity and foster an ambitious next generation, we are delighted to launch this pioneering initiative, which will deliver these life experiences as well as supporting teaching staff and parents.”

Drivers of used electric vehicles face a “tax penalty” that could keep older, polluting cars on the road for longer, according to new analysis.

Green consultancy New AutoMotive warned that vehicle excise duty (VED) reforms will see motorists charged up to £145 more per year for choosing a cleaner vehicle.

Pure electric cars are currently exempt from VED.

But Chancellor Jeremy Hunt announced last month that from April 2025 new zero-emission cars will be liable for a first-year rate of £10, and an annual rate of £165 in subsequent years.

Zero-emission cars registered from April 1 2017 – which is the vast majority of all electric cars on the road – will also be liable for the £165 rate.

VED for cars registered before that date will continue to be based on their fuel efficiency.

New AutoMotive calculated that 7.6 million petrol and diesel cars in that category will be liable for no more than £30 VED from April 2025.

“These changes undermine the running cost advantages of owning an EV (electric vehicle),” the consultancy’s co-founder Ben Nelmes told the PA news agency.

“There will be a large disparity between the VED on electric cars and on many of the more polluting cars on the road.

“This tax penalty may cause people to continue to run older polluting cars for longer.

“That would increase the UK’s emissions of CO2, as well as reduce lower income households’ ability to access the running cost benefits of purchasing a second hand EV from 2025.”

Mr Nelmes urged the Chancellor to “rethink” his announcement and introduce a minimum level of VED for all vehicles, which “rises slowly” as the number of electric vehicles grows.

Applying increases to older, more polluting cars “could help usher these ageing vehicles off the road”, he added.

New AutoMotive also estimated that the decision to remove the exemption for electric cars from the Expensive Car Supplement from April 2025 would affect 30-40% of current electric car registrations.

The supplement adds £355 annually to VED bills for five years for new cars priced at more than £40,000.

A Treasury spokesman said: “Electric vehicle registrations have increased 1,730% since 2016 and sales continue to reach record highs, which is why now is the right time to normalise their role on our roads even more by levelling the playing field on tax with petrol and diesel.

“We continue to support the electric vehicle revolution through over £2.5 billion in incentives, including less year one road tax, nil-rating the Van Benefit Charge and grants to bring down buying costs, and there is also a high bar for the expensive car supplement – around four in five new cars do not cost enough to meet it.”

New car sales grew for the fourth consecutive month in November, with registrations growing by 23.5 per cent compared to the same period in 2021, according to figures released today by the Society of Motor Manufacturers and Traders.

The number of new cars joining UK roads in November amounted to 142,889, driven predominately by large increases in fleet and business registrations, as well as some particularly popular new models. Here are the 10 best-selling cars in November.

1. Nissan Qashqai – 5,636 registrations

Nissan’s Qashqai stays at the top for another month, with this crossover having a big lead on the next most popular car – and it’s likely to finish the year as the UK’s best-selling car.

Built in Sunderland, Nissan is prioritising UK customers and isn’t suffering from the same production holdups as many brands are facing. The Qashqai is a popular and appealing choice to families with its practical interior, great safety record and affordable pricing.

2. Tesla Model Y – 4,229 registrations

Tesla has had another great year, with its Model Y SUV being the second most popular car in November – impressive considering more than 4,000 were registered in December and when they have a list price of more than £50,000.

Buyers love the Model Y’s tech-laden interior, dominated by a huge touchscreen. There’s also access to the great Tesla Supercharger network, while strong performance and a range of up to 331 miles make this SUV a very attractive choice.

3. Mini – 3,312 registrations

It’s another British-built model that is ranked highly in the best-sellers list, with Mini’s well-loved Hatch being the third most popular model in November. Renowned for its style, the Mini is also available with a great range of petrol engines, as well as an increasingly desirable Electric version.

Offering a fun driving experience, the Mini packs an upmarket interior that makes it one of the most high-quality superminis on the market.

4. Ford Fiesta – 2,869 registrations

Ford might stop selling its Fiesta by June next year, but that isn’t preventing it from being a very popular choice in the current market, with 2,869 models finding homes in November.

The Fiesta is terrific fun to drive but it also packs a host of versions to appeal to a broad range of customer – from rugged Active versions through to the sporty ST hot hatchback. Its latest mild-hybrid petrol engines also offer great efficiency.

5. Vauxhall Corsa – 2,537 registrations

The Corsa might not have its usual number one position in November, but this Vauxhall supermini is continuing to serve as a popular choice, particularly for money-savvy buyers that can get behind the wheel from £220 a month.

The option of the Corsa Electric is also contributing to this model’s continued success, though more affordable petrol and diesel engines remain available for those not wanting an EV just yet.

6. Volkswagen Golf – 2,516 registrations

The sheer choice of versions that Volkswagen offers on its Golf is a key contributor to its success – from more affordable Life versions through to the 316 Golf R hot hatch, with plug-in hybrids and sporty diesels also sandwiched in between.

While many say the family hatchback market is in decline, the Golf continues to serve as a fantastic option for those wanting to buck the trend of buying an SUV.

7. Ford Puma – 2,408 registrations

While the Ford Puma might have slipped down the charts in November, it remains the third most popular car throughout the year. It’s easy to see the appeal of the Puma, too. Based on the Fiesta, the Puma offers more space and a greater ride height that aids accessibility.

A wide choice of trims and engines are available too, with the mild-hybrid petrol being a real highlight – offering great performance and averaging around 50mpg.

8. Volkswagen T-Roc – 2,370 registrations

The T-Roc’s proving to be an increasingly popular model in Volkswagen’s range – offering more style and space than a Golf, but in a similar footprint and not for a huge amount more money.

This crossover is good to drive as well, while a broad range of petrol and diesel engines are offered – you can even choose four-wheel-drive on selected models. A hot ‘R’ model sits at the top of the range, using the same engine and underpinnings as the fantastic Golf R.

9. Volkswagen Polo – 2,227 registrations

Volkswagen had a good month in November, with its Polo also appearing in the top 10. This supermini remains one of the best cars in its segment and is a great all-rounder thanks to its practicality, driveability, low running costs and technology.

Sporty-looking R-Line models add extra street-cred to the Polo, while a 197bhp GTI model sits at the top of the line-up. Standard equipment is excellent on this VW too – including a touchscreen, digital instrument cluster and adaptive cruise control.

10. Toyota Yaris – 2,272 registrations

Toyota’s line-up is predominantly now made up of hybrids, and the entry-level Yaris is serving as its best-selling model. Rounding off the top 10, this supermini offers exceptional standard safety equipment and a far bolder design than its predecessors.

What’s more, the Yaris comfortably returns more than 60mpg with its self-charging hybrid setup, while being easy and comfortable to drive.

Tesla boss Elon Musk has handed over the first production versions of its Semi truck at a launch event in the US.

It’s been five years since Tesla originally revealed the huge electric HGV, and although production was meant to begin in 2019, the first examples didn’t roll off the production line until this October.

The truck was driven on to the stage by new Twitter boss Elon Musk at a launch event held yesterday evening (December 1) at the brand’s Gigafactory in Sparks, Nevada, where the vehicle is also produced.

Musk described its performance as an “elephant moving like a cheetah”, and promised three times the power of the next diesel truck.

Using a new 1,000-volt powertrain, which Tesla says will be developed further for other production models, it also packs a huge 1,000kWh battery, which the firm claims gives 500 miles when charged.

No price has yet been announced.

Tesla says the model has been ‘hardcore tested’ in a host of weather systems and environments, and that it will also be used by the firm as its delivery trucks. The brand showed a timelapse video of the truck completing a 500-mile journey as well.

During the event, Tesla announced that first deliveries had begun, with the initial examples being handed over to representatives of Pepsi. The food and beverage giant is said to have reserved 100 of the Semi trucks after the initial reveal.

Musk said: “It’s been a long journey, a long five years, but this is going to really revolutionise the roads and make the roads a better place in a meaningful way, so thank you for your support for all the years.”

Insurance firms have been warned not to undervalue cars and other items when settling insurance claims.

The Financial Conduct Authority (FCA) said it has seen evidence some people left with written off cars after an accident are being offered a price lower than the vehicle’s fair market value by their insurance providers.

In some cases, insurers are only increasing offers to the fair market price when the customer complains, the regulator said.

Offering a price lower than fair market value is not allowed under FCA rules.

Sheldon Mills, executive director for consumers and competition at the FCA, said: “When making an insurance claim, people shouldn’t need to question whether they are being offered the right amount for their written off car or other goods that they need to replace.

“Insurance firms should offer settlements at the fair market value. This is especially important now as people struggling with the cost of living will be hit in the pocket at precisely the time they can ill afford it.

“We are watching the behaviour of firms closely and will act quickly to stop firms and prevent harm to consumers where we see it.”

The regulator said the rising cost of living may be putting increasing pressure on insurers to control claims costs.

But it said attempts to control claims costs by making offers lower than the customer is entitled to under the policy would be unfair and likely to disproportionately affect customers in vulnerable circumstances.

Those who think their claim may have been undervalued can complain to their insurer and then to the Financial Ombudsman Service (FOS) if their complaint is not resolved.

Firms can offer cash instead of repair or replacement to settle claims. However, settling claims in this way may sometimes not be in the consumer’s best interest if they are not able to easily arrange repairs or replace an item themselves, or if inflation means they lose out in real terms, the FCA said.

The regulator expects firms to make sure people have enough information to understand the implications of the different settlement options, particularly those in vulnerable circumstances.

They should also have adequate systems and controls around claims handling processes and not incentivise their staff to engage in potentially harmful claims settlement practices, the regulator said.

The average premium paid by customers for private motor insurance in the third quarter of this year was 2% higher than a year earlier, as vehicle repair costs increased, according to an insurance industry body.

Motorists typically paid £436 in the third quarter of 2022, which was a 3% increase compared with the second quarter of this year, the Association of British Insurers (ABI) said.

It said insurers have been finding it increasingly challenging to absorb rising costs, such as more expensive repairs and rises in used car prices.

The average cost of repairing vehicle damage under a policyholder’s own motor policy jumped by 16% to just over £3,000 in the year to the second quarter of 2022, the ABI said.

The continued shortage of semiconductor microchips and global supply chain issues have led to longer waiting times for many new vehicles and vehicle parts. This has contributed to a rise in the demand for second-hand cars, the association said.

This reflects increasing vehicle sophistication, leading to more expensive repairs, as well as rises in the costs of raw materials such as paint, it added.

The ABI’s tracker looks at the prices people pay for their cover, rather than quoted prices.

The Financial Conduct Authority (FCA) introduced new rules on the pricing of motor and home insurance on January 1 this year.

The rules ensure that the price paid by renewing customers is no greater than the price charged to an equivalent new customer for the equivalent policy bought through the same distribution channel, such as insurer, broker, or price comparison website.

Jonathan Fong, the ABI’s senior policy adviser, general insurance, said: “Insurers recognise that these continue to be difficult times for many households dealing with the rising cost of living.

“Like many other sectors, motor insurers are facing sustained higher costs, which are becoming increasingly challenging to absorb. Despite this, they continue to do all they can to keep motor insurance as competitively priced as possible.

“Anyone concerned about being able to continue paying their motor insurance premium should speak to their insurer about any alternative payment options that may be available.”

Values of used electric cars are plummeting as buyers are increasingly turning away from these models because of rising energy prices.

According to data from automotive valuation experts Cap HPI given to Car Dealer Magazine, the average price of an electric car dropped 3.7 per cent in November, compared to the 1.2 per cent drop recorded across the market. Experts say that the additional cost of an electric over a petrol and diesel model, as well as rising charging costs, are making many shy away from choosing an EV.

The three biggest used car price falls recorded in November were all electric cars, with the Tesla Model S down £2,767 in price, accounting to a 5.9 per cent drop. Tesla’s Model 3 had fallen in value by the highest percentage (6.8 per cent), with an average price down £2,275, according to Cap HPI data. Audi’s electric e-tron SUV had also dropped in price by £2,154 (5.9 per cent).

Two further EVs also made up the top 10 biggest used car price falls in November, with the Renault Zoe down £808 (5.9 per cent) and Smart ForFour Electric dropping in value by £600 (5.9 per cent).

Speaking to Car Dealer, Derren Martin, Cap HPI’s head of valuations, said: “Consumer demand for electric vehicles has dropped away.

“Electric cars are often an aspirational purchase and in a cost of living crisis people are not necessarily going out and buying them at the moment. They’re expensive vehicles and there’s more of them coming back into the market. So it’s kind of the wrong time with demand dropping away and supply increasing – that really only leads to one thing.”

Martin added that car dealers are “concerned” about electric vehicle prices, though he says that used car prices in general aren’t going to crash in the way many predicted.

He said: “Last year, used car values went up by 30 odd per cent, which is absolutely unprecedented. A crash is just not going to happen.

“The reason that cars aren’t going to just drop in value in the used car market is because there’s just simply not enough supply. There’s two million less new car registrations in the market. Those cars are never going to appear as used cars. So there’s just not the supply there to cause a huge crash.”

Nearly half (49%) of drivers say they frequently or occasionally avoid using lane one on smart motorways without a hard shoulder, a new survey suggests.

The RAC, which commissioned the poll of 1,904 motorists, claimed the research “completely undermines” the main reason for turning hard shoulders into running lanes, which was to boost road capacity.

A fifth (21%) of respondents who have driven on these all-lane running smart motorways said they frequently stay out of the left-hand inside lane, while 28% said they do so occasionally.

Asked why they deliberately avoid driving in lane one, 77% said they are worried they may encounter a stationary vehicle, while 40% are fearful of being hit if they had to stop.

Almost three in four (74%) people questioned said they would feel safer if there were more emergency refuge areas.

The Highway Code says drivers should “keep in the left lane unless overtaking”, but there have been long-standing fears about smart motorways following crashes in which vehicles stopped in live lanes were hit from behind.

Around 10% of England’s motorway network is made up of smart motorways.

They involve various methods to manage the flow of traffic, such as converting the hard shoulder into a live running lane and variable speed limits.

These all-lane running smart motorways boost capacity at a lower cost than widening roads.

RAC road safety spokesman Simon Williams said: “Ever since the first all lane running smart motorway opened on the M25 in April 2014, there has been a considerable amount of controversy about safety which worsened significantly following several high-profile fatal collisions.

“Consequently, these roads continue to be deeply unpopular with drivers who, before their introduction, had been used to having the relative refuge of a hard shoulder available in an emergency.

“Our latest research worryingly shows that half of drivers actively avoid using the inside-most lane for a variety of reasons, not least the fear of being crashed into, meaning much of the extra carriageway capacity they were meant to bring is wasted.

“Motorists know they should always drive in left-most lane they can, but with so many feeling theirs and their passengers’ lives are in jeopardy, it’s going to be very hard to convince them otherwise no matter how much extra safety technology is introduced.”

National Highways has insisted smart motorways are safer than conventional motorways and completed a series of improvements by the end of September.

Stopped vehicle detection technology was retrofitted to all smart motorways without a hard shoulder.

Installation of additional signs showing the distance to the next emergency stopping area was completed, and all enforcement cameras were upgraded to enable detection of closed lane violations.

A target of traffic officers reaching stopped vehicles on all-lane running smart motorways within 10 minutes was also achieved for the first time.

A National Highways spokesperson said: “We are committed to taking action to help drivers and their passengers feel safe and be even safer on all our roads.

“We are taking steps to further increase confidence in smart motorways. We have already added technology to detect stopped vehicles and are preparing a £390 million programme to retrofit an additional 150 emergency areas by 2025. This will represent around a 50% increase in emergency areas, giving drivers added reassurance.”