Drivers are having to pay considerably more to keep their vehicles topped up with fuel compared to 16 months ago and RAC has warned that further rises are on the horizon due to a complex range of international issues.
RAC’s Fuel Watch keeps track of the fuel costs in the UK and its latest data found that a litre of unleaded petrol has now soared in price to 120.46p, while a litre of diesel will set drivers back 126.02p. The former is almost a three penny increase on the average price back in March and a substantial uptick on the price back in late 2016.
The rise is being driven partly by the rising cost of oil, which saw a 12% surge last month. Experts are not confident that prices will come back down quickly either, as further political uncertainty is likely to have a notable impact on global oil production and increase the chances of a long-term hike in petrol prices. It all means the average road user will have to fork out more to keep their vehicles running.
Regardless of the fluctuating nature of petrol prices, motor traders will also need to get the correct motor trade insurance during the coming months to cover their work activities and cars they are responsible for. Fortunately, a cost-effective policy can keep more money in a trader’s pocket at a time when petrol is becoming increasingly expensive.
The cost of petrol and diesel has now surged to a level not seen since 2014 and is the sharpest increase overall since December 2016. RAC fuel spokesperson Simon Williams said a 3p rise is “fairly unusual” and that similar increases are not likely to be seen regularly, but admitted that it was still bad news for the general public as they are paying around 8p more for a litre compared to last summer.
Williams said: “The cost of filling up an average family-sized 55-litre car with petrol is now nearly £68 (£67.76) which is £4.50 more expensive than it was last July. For diesel car drivers it’s even worse with a tank costing over £69 (£69.31), which is £5.50 more.” Northern Ireland saw the biggest increase in the UK at 3.47p, while the West Midlands had the smallest hike at 2.38p.
Williams concluded by saying that oil prices were raised by a gain of $8 in April which was a result of different international issues. This is worrying as the combination of political factors could negatively affect global supply. The primary concern is that the United States may re-impose crippling economic sanctions on Iran, which is the third biggest oil producer in OPEC.
Williams went on to say that the forecast for fuel prices is not looking particularly positive at the moment due to the fact that oil prices are well over $70 a barrel. If Iranian sanctions are re-imposed by the US and supply drops, it will be necessary for motorists to pay far more at the pumps.
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