Motorists look set to face higher prices when filling up their cars as the price of oil reaches a 13-month high.
With lower demand for petrol and diesel during the coronavirus pandemic, it meant many saw welcome savings at the pump. But with restrictions slowly easing globally, the RAC has warned UK motorists that they might see prices of petrol and diesel go up again as there’s more demand.
The cost of oil has reached a 13-month high at $64 a barrel, with the only thing stopping forecourts from putting prices up said to be the strong pound to dollar exchange rate. Any weakening of the pound is set to result in a rise in prices.
Data from RAC’s Fuel Watch data shows that petrol rises have been rising for 13 constant weeks, with prices now 8.03p more than on November 22 (now an average of 121.84p per lustre), and diesel 7.68p more expensive than in November, with a current average at 124.91p per litre.
RAC fuel spokesman Simon Williams said: “When the pandemic hit last year, the effect on forecourt prices was nothing if not dramatic – those still driving through March and April paid less to fill up than they had done since mid-2016, when the price of oil plummeted as a result of deliberate over production.
“But by the summer the oil price had rebounded and today is at a level not seen since the start of 2020, meaning storm clouds are once again gathering over UK forecourts. Ironically and rather unfortunately, as economic confidence grows as measures to combat the coronavirus take effect, it’s likely to mean drivers end up paying more to fill up in the coming weeks.”
February 19, 2021