British lawmaker Rishi Sunak, and Chancellor of the Exchequer Thursday, Feb. 13, 2020. (AP Photo/Matt Dunham)

The Chancellor of the Exchequer, Rishi Sunak, has been urged to cut VAT on fuel as drivers continue to be hit by record pump prices.

The RAC called for prices to be lowered after data firm Experian Catalyst said the average cost of a litre of petrol reached a new high of 153.50p on Thursday, up from 152.20p on Wednesday. The cost of diesel rose from 155.7p to a record 157.47p over the same time period.

Oil prices have spiked due to concerns over supplies of fuel since Russian troops invaded Ukraine last week.

RAC fuel spokesman Simon Williams said: “This latest round of rises means the price of a litre of unleaded has now gone up by nearly 4p in just a week, adding £1.86 to the cost of filling a 55-litre family car”.

VAT is currently charged at a rate of 20% on petrol and diesel.