Petrol prices rise again: Second consecutive monthly increase recorded, says RAC
The average price of petrol across the UK has recorded a second consecutive monthly rise, hitting 145p per litre, according to data from RAC Fuel Watch.
Meanwhile, diesel prices remained stable at 146p, ending an eight-month trend of falling costs.
The data reveals that petrol prices have risen by nearly 2p since the beginning of June, with a one-penny increase since the start of July.
In contrast, diesel prices stayed the same, breaking the continuous decline that lasted for eight months.
The sudden rise in petrol prices coincides with a $10 increase in the price of oil per barrel in July, reaching $85.56 by the end of the month.
This significant jump, not seen since mid-April, caused the wholesale price of both unleaded petrol and diesel to increase by 7p and 9.5p respectively.
The analysis by RAC indicates that this price movement has led to a squeeze on the previously inflated retailer margins.
There is now speculation over how quickly and to what extent pump prices may rise, and whether supermarkets, dominating the UK fuel retailing, will operate with smaller margins or aim to make more per litre.
RAC fuel spokesman Simon Williams commented on the situation, expressing concern over the rise in oil prices and the impact on wholesale costs.
He warned that although there is no immediate sign of an upward price spiral like last year, the “better times at the pump are over for the time being.”
Furthermore, Williams drew attention to the discrepancy in fuel prices between Northern Ireland and the rest of the UK.
Despite a 1p increase in petrol and 3p in diesel, the fuels remain considerably cheaper in Northern Ireland.
He lamented that drivers on the UK mainland are “still losing out” and expressed hope that price alignment would result from lower forecourt prices in the rest of the country.
The RAC’s analysis paints a worrying picture for UK motorists, especially with the ongoing cost-of-living crisis.
The report signals an end to the period of relief from climbing fuel prices and raises questions about the future trajectory of costs at the pump.
With the Competition and Markets Authority’s fuel market investigation findings yet to have an immediate impact, consumers and industry experts alike will be closely watching the market for signs of further increases.
He said: “While we’re fortunately not in the kind of upward price spiral we experienced last year, it feels like the better times at the pump are over for the time being. If oil producers continue to curb production then bigger forecourt price rises could be on the cards.”
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