Drivers are “in for a hard time at the pumps” warns RAC after global oil prices surge

Drivers are “in for a hard time at the pumps” after global oil prices surged to their highest level in 2023.

Brent Crude climbed to $95 a barrel on 19th September, following a warning by the International Energy Agency (IEA) that a production cut by Saudi Arabia and Russia would result in a “significant supply shortfall”.

RAC fuel spokesperson Simon Williams. “Diesel is set to jump in price from its current average of 159p a litre to over 170p. But the situation with petrol is different with RAC Fuel Watch data showing that prices on the forecourt are actually too high due to retailers taking bigger margins than normal.”

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

The latest RAC Fuel Watch data show UK motorists are currently paying on average 155.5p per litre of petrol, while diesel is averaging 159.05p.

Petrol prices have soared by 10p per litre since 1st August, while diesel costs have increased by around 13p.

Simon Williams said: “If oil were to hit 100 US dollars, it should really only take the average petrol price up by another 2p.

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

A report published by the Competition and Markets Authority (CMA) in July 2023 found that the UK had been suffering from a weakening of competition in fuel retail since 2019.

The report also found that motorway service stations are currently charging around 20p per litre more for petrol and 15p more for diesel compared to other fuel stations around the UK.

Speaking in July when the report was published, Sarah Cardell, Chief Executive of the CMA said: “Competition at the pump is not working as well as it should be, and something needs to change swiftly to address this.

“Drivers buying fuel at supermarkets in 2022 have paid around 6 pence per litre more than they would have done otherwise, due to the four major supermarkets increasing their margins. This will have had a greater impact on vulnerable people, particularly those in areas with less choice of fuel stations.

“We need to reignite competition among fuel retailers and that means two things. It needs to be easier for drivers to compare up to date prices, so retailers have to compete harder for their business. This is why we are recommending the UK government legislate for a new fuel finder scheme which would make it compulsory for retailers to make their prices available in real time.”