UK drivers are once again set to bear the brunt of skyrocketing fuel prices, the AA has warned. The rise comes as a result of the jump in cost of oil at wholesale that is being passed on at forecourts across the country.
Figures from Experian show that the average price of a litre of petrol on Monday (January 30) stood at 148.8p. This was up marginally from 148.4p the week prior, which is still lower than the record highs of 191.5p seen in July of last year.
Prices of oil are coming in at an increase of $8 to $10 currently, which is the reason behind the rising cost of petrol and diesel for motorists. Figures at the end of January reveal that a barrel of oil is currently priced $86 to $88.
Luke Bosdet, a spokesperson for the AA said: “After a fall of close to 43p a litre since the summer record, drivers feared that a rebound in petrol prices would eventually happen. So far, pump price averages have risen only slightly, but today’s price is only 0.9p below the average price at the start of the Ukraine war on February 24 when pump prices surged.”
Simon Williams from RAC explained: “We hope this will remain the case, but drivers are likely to see pump prices rise gradually this year as oil is predicted to go up due to growing demand from China as it reopens after its Covid restrictions. But while the price of petrol has clearly bottomed out, diesel is still too expensive based on its wholesale cost”.
The news of potentially skyrocketing fuel prices come after the RAC reported that UK retailers pocketed additional profits of 5p on every litre of fuel sold in 2022. Echoing the RAC, the AA also claims retailers have not been passing on their savings to consumers quickly enough and that there is “no justification” behind the rising costs at forecourts.