Several factors behind rising petrol prices include the wars in Ukraine and Gaza, a cut in production by Russia and Saudi Arabia and rising demand from China
Petrol prices are averaging above 150p a litre for the first time in six months after weeks of price rises.
The Competitions and Markets Authority studied data representing 60% of UK forecourts. Factors behind rising prices include the wars in Ukraine and Gaza, a cut in production by Russia and Saudi Arabia and rising demand from China.
The AA’s Luke Bosdet said: “Inflation has been heading downwards at quite some speed but petrol’s rebound to 150p a litre leaves a big boulder in the road. Government data shows that for the fourth week petrol prices have been higher than at the same time a year ago. This last happened in February 2023.
“Five days of falling wholesale costs, with the value of oil coming off the boil, offers hope that pump prices may not get much worse in the short-term. However, road fuel priced above 150p a litre grabs the attention of drivers and will lead some to re-tighten their belts on other spending.”
The RAC said unleaded is up by 3p a litre since the start of the month and 9p since the start of the year. RAC spokesman Simon Williams said: “Drivers are now really starting to feel pain at the pumps, with a litre of unleaded already up by more than 3p a litre since the start of the month and 9p since the start of the year – adding £1.65 and £5 to the cost of filling a typical family car. There are two reasons for this – the rise in the cost of oil and a weakening pound, which makes it more expensive when retailers come to buy new fuel supply.
“The big question is what happens now. While the Middle East tensions saw oil hit the $90 a barrel mark, prices have since eased a little which is starting to translate into lower wholesale prices for UK retailers. In theory at least, this should mean prices at the pumps don’t rise much further, if at all – but so much depends on the margin these same retailers decide to take. Right now, it’s drivers of diesel vehicles who have the right to feel aggrieved as the average margin on a litre of diesel is 14p which is well up on the long-term average of 8p. Higher margins always mean higher prices for drivers.”
