Petrol and diesel prices are on the rise again, with fuel costs heading towards their highest level in four weeks, according to new analysis from the RAC. The motoring organisation has warned that petrol has increased to 152.54p per litre since July 9, a rise of 2p per litre in just over a week. Meanwhile, diesel costs have jumped from 164.52p per litre on July 9 to 167p per litre on July 17, an increase of 2.5p per litre.
Recent price trends and future outlook
Prices had been falling, with petrol dropping around 9p per litre between the end of May and the start of July. However, the RAC's head of policy, Simon Williams, stressed that the price rises may not end there, with wholesale costs showing signs that further increases may be around the corner. He said: "Sadly for drivers – many of whom will be about to depart for a much-needed summer break – prices at the pump are on the rise again. Since hitting a three-month low on 6 July, petrol has already gone up 2p while diesel has jumped 2.5p in just over a week."
Williams added: "The average price of unleaded is now 152.54p a litre while diesel is 167p. What's more, the increases are likely to keep coming thick and fast as the cost of a barrel of oil has gone from the low $70 mark to mid-$80s in just under two weeks. Unfortunately, RAC wholesale data analysis shows petrol is heading back to 155p a litre and diesel to over 170p – prices last seen in mid and late June respectively."
Impact on motorists
The RAC has calculated that filling a 55-litre family car with unleaded now costs £83.90, while motorists topping up with diesel face a bill of £91.85. The recent price increases are partly attributed to conflict in the Middle East, which saw petrol and diesel fuel bills soar earlier this year. RAC Fuel Watch data shows that petrol costs are still 19.7p per litre higher than at the end of February, with diesel now 24.6p higher.
Last week, the International Energy Agency (IEA) warned that there could be a petrol and diesel supply crunch due to the impact on refineries if Middle East tensions continue. The RAC's analysis suggests that further price increases are imminent, with petrol expected to reach 155p per litre and diesel to exceed 170p per litre in the near future.
