On Tuesday, the price of gasoline increased by more than 2 pence per litre, the largest daily increase in 17 years.
According to the RAC, the average cost of filling a typical family car with petrol is now £99.40 and may exceed £100 as early as Thursday.
Fuel price increases have been fueled by the Ukraine conflict and efforts to reduce Europe’s reliance on Russian oil.
Many households are feeling the pinch as food and energy prices rise.
According to the RAC, the average price of gasoline rose to 180.73p per litre on Tuesday.
Meanwhile, the average price of diesel increased by nearly 1.5 pence to 186.57 pence per litre, making the cost of filling a 55-litre family car £102.61.
The government announced a 5p per litre cut in fuel duty in March to help motorists save money.
However, motoring groups are concerned that retailers are not passing on the savings to customers.
The prime minister’s official spokesman said on Wednesday that the government was “not confident” that this was happening at all petrol stations.
He stated that the government is “continuing to look at all possible options” and that “transparency may play an important role” in ensuring that the cut is passed on.
The government claims that any increases in VAT receipts from rising fuel prices will be more than offset by lower household spending and VAT on other items.
If the Competition and Markets Authority (CMA) finds sufficient evidence that the 5p fuel duty cut was not passed on to drivers, it will launch an investigation that could result in fines for violating retailers.