04 September 2023 , 10:46
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The price of petrol and diesel is rising again - with drivers having just faced the biggest monthly fuel price jump in more than 20 years.
The RAC said 7p per litre was added to the average cost of unleaded petrol in August, while there was an 8p a litre hike in diesel prices. The average price of unleaded petrol is now 152.71p a litre, while diesel has hit 154.83p a litre, according to data from the RAC.
Although prices have crept up, they are still way off the record levels recorded last year. During 2022, the price of unleaded petrol peaked at 191.5p a litre and 199.09p a litre for diesel. So what is causing the increase?
RAC fuel spokesperson Simon Williams explained how prices are being driven by a rise in the cost of crude oil. The price of a barrel has gone up by nearly $12 since the start of July, to nearly $87 a barrel, following production cuts by Opec+.
Mr Williams said: “August was a big shock to drivers as they had grown used to seeing far lower prices than last summer's record highs. Seeing £4 or more go on to the cost of a tank in the space of just a few weeks from a pump price rise of 6-7p a litre is galling, particularly for those who drive lots of miles or run an older, less fuel-efficient car.
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"While the increase is clearly bad news for drivers, it could have been far worse had the biggest retailers not let their inflated margins from earlier in the year return to more normal levels as wholesale fuel costs went up. All we can hope is that this move by many big retailers back to fairer forecourt pricing remains when wholesale costs go down again. Only time will tell."
An investigation by the Competition and Markets Authority (CMA) found drivers paid an extra 6p per litre for fuel at supermarkets last year as weak competition let them charge more. The CMA said motorists paid between £2.70 and £3.90 too much for a tank of petrol or diesel every time they filled up.
Petrol retailers have agreed to work with the competition watchdog to set up a scheme to allow drivers to compare live fuel prices online. A temporary scheme to make the daily fuel prices of major retailers freely available to consumers should be live by the end of August.
Asda has already committed to publishing its live fuel price data across its 320 UK forecourts.