Motorists 'in for a hard time at the pumps' as oil prices surge

Motorists are being warned of rising gasoline prices as international oil costs attain a 10-month excessive.

Petrol costs have already reached the very best UK common since December final 12 months at 155.5p a litre – and they’re 10p greater than the start of August.

The RAC stated that manufacturing cuts by Saudi Arabia and Russia, and an elevated demand from China, have resulted within the spike in prices, that means drivers can be “in for a hard time at the pumps”.

Brent crude, the benchmark for oil costs, ended Monday at $94 a barrel – its highest value since November 2022.

Before the beginning of this month, the very best oil value in 2023 was $88 in January.

RAC gasoline spokesman Simon Williams stated diesel was set to leap in value from its present common of 159p a litre to greater than 170p.

But he stated “the situation with petrol is different”, warning that “prices on the forecourt are actually too high due to retailers taking bigger margins than normal”.

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‘Supermarkets driving up gasoline costs’

“If they were playing fair with drivers, they would be reducing their prices rather than putting them up,” Mr Williams stated.

“However, if oil had been to hit 100 US {dollars}, it ought to actually solely take the typical petrol value up by one other 2p.

“But if retailers remain intent on making more money per litre with increased margins then this could be closer to 160p.”

Read extra:
Why are gasoline costs on the rise and can they arrive down?
‘Shocking’ petrol and diesel value disparity in UK revealed

Analysts additionally warn that rising international oil costs may impression inflation, with forecasts saying the UK economic system could have the very best inflation fee among the many world’s richest nations this 12 months.

In June 2022, common petrol costs reached a “frightening” new report excessive of 177.9p a litre, with the typical value to fill a 55-litre household automotive with unleaded petrol virtually £98, in response to the RAC

Then-Energy Secretary Grant Shapps held talks with key grocery store and gasoline agency bosses in July over “sky high” gasoline costs, and vowed to inform them “enough is enough”.

This got here after the Competition and Markets Authority discovered elevated grocery store revenue margins led to drivers paying an additional 6p per litre for gasoline final 12 months.

The Department for Energy Security and Net Zero have been approached for remark.