Fuel prices have shot up in the last three weeks following a rise in the cost of oil, latest analysis has revealed.
The Fuel Watch data from GBFE partner RAC shows the price of petrol has gone up more than 3p a litre to 143.4p, while diesel has increased by 4p to 152p. The increases have added £2 to the cost of filling up a family car.
Petrol had been on a welcome downward trend over the last three months, falling by 17p from 157p to below 140p in mid-January – the first time it had been below this mark since mid-October 2021.
Diesel went down by 15p over the same period, from 163p in early October to just below 148p in late January, although it was cheaper for much of last summer, according to the RAC data.
The pump price increases have been brought about by a jump in the price of oil, which has been trading above $80 a barrel for most of the last four weeks, having been well below that for the previous seven.
The RAC said the Red Sea attacks by Houthi rebels, which are forcing tankers to avoid the Suez Canal and instead go round South Africa’s Cape of Good Hope, were clearly playing their part.
But fuel spokesman Simon Williams added that factors also included global refinery maintenance closures, the start of America’s driving season and UK retailers buying more fuel stocks ahead of the Budget to protect against a possible fuel duty hike by the Chancellor.
“Despite these factors, we ought not to see forecourt prices go up too much more from where they are today, but a lot depends on how much margin the biggest retailers decide to take,” he continued.”
One positive piece of news is that supermarket margins are lower than they were in January, following warnings by the RAC. But they are still significantly higher than they were prior to the pandemic and Russia’s invasion of Ukraine.
“If a ‘new normal’ supermarket margin were to settle around 7p, drivers would get a fairer deal. Last year, RAC data shows they benefitted from an average mark-up of 10p on every litre of fuel sold as opposed to just under 6p in 2019,” Williams finished.
