The Leading News & Information Service For The Facilities, Workplace & Built Environment Community

Hitting the Road is Hitting the Pocket

24 June 2016 | Updated 01 January 1970

The RAC study has found that average prices of petrol and diesel have increased for the third month in a row - but there is no sign of relief despite Brent Crude prices falling as a result of Brexit.

The RAC Fuel Watch data recorded that filling up an average saloon car approximately £5 more expensive than it was at the end of February.

The figures for May reveals that the average unleaded pump price rose 2p a litre (1.92p) from 108.67p a litre to 110.59p, adding £1 to the cost of filling up a 55-litre saloon car in the course of the month (£59.77 to £60.82). This means that since the end of February the cost of a tank of petrol has risen by £4.77 (101.91p – £56.05 v 110.59p – £60.82).

The average diesel forecourt price saw an even greater increase, going up by 2.2p a litre from 108.49p to 110.70p. This made the cost of a full tank of diesel £1.22 more expensive (£59.67 to £60.89) and a significant £5.14 dearer than at the end of February (101.36p – £55.75 v 110.70p – £60.89).

Average supermarket prices of petrol and diesel increased by 2% – 1.85p a litre for petrol (106.08p to 107.93p) and 1.68p for diesel (105.91p to 107.59p).

Wholesale prices of both fuels have also gone up; petrol by 3.2p a litre and diesel by 4p a litre, predominantly as a result of the oil price continuing to rise. The spot – or physical – price of oil, so important in the wholesale fuel price, rose 14% in May, adding US$6 to a barrel (US$43.18 on 3 May to US$49.26 on 31 May) and a barrel also reached its highest price since mid-October 2015 when it finished trading at US$49.53 on Thursday 26 May.

“Motorists will be disappointed to see pump prices going up again having enjoyed filling up their vehicles with petrol and diesel for under £1 a litre at the start of the yea,” stated Simon Williams, RAC Fuel Spokesman. “The sub-£1 litre is now sadly starting to seem like a distant memory. Since the end of February the price of both unleaded and diesel have increased by around 9p a litre which has driven the cost of filling up by around £5.”

Much now depends on the physical price of oil not rising any further. The oil price teetered around the US$50 a barrel mark for the last few days of May, having risen due to the extra demand from the start of the US summer driving season but it has yet to go higher. Fortunately, some of the refinery issues which had led to lower than expected output have been resolved and there has now been increased crude production in the Middle East.

“With OPEC deciding not to curtail production at its six-monthly meeting in Vienna, there is good reason to expect the oil price will not go far above the current level for the time being but predicting what will happen with oil is far from straightforward,” warned Williams.


UK fuel price variation

Across the UK, East Anglia saw the biggest increase in petrol prices with a 2.18p a litre rise, while the South East experienced the greatest diesel price hike at 2.31p.

The North West underwent the smallest increases in both petrol and diesel, while Northern Ireland remains the cheapest place to buy fuel in the UK with petrol at 109.64p and diesel at 109p. The South East meanwhile has the most expensive fuel with unleaded at an average of 110.97p and diesel at 111.37p.

Picture: Latest figures from the RAC has found that prices at the pump and wholesale continued to rise

Article written by Robin Snow | Published 24 June 2016


Related Tags

Related Articles

German Cities Impose Emergency Energy Saving Measures

As gas production from Russia’s Gazprom slows, cities in Germany are switching to cold water in pools, turning off the spotlights at public monuments and banning...

 Read Full Article
Fuel Protests – Does Climate Activism Work?

2022 has seen several protests at refineries and fuel terminals, causing disruption in fuel supplies. Does action of this scale help or hinder progress on stopping...

 Read Full Article
How a Russian Invasion of Ukraine Could Affect Global Markets

In the event of a Russian invasion of Ukraine, several markets could feel the effect, including energy, grain and fuel. The USA, UK and the EU have already begun...

 Read Full Article
The Right to Disconnect at Work – Is it A Legal Matter?

A European Parliament majority has voted for a law that grants workers the right to digitally disconnect from work without facing negative repercussions. MEPs are...

 Read Full Article
Bank Holiday Road Chaos Commences

The misery that is travelling by road on a Bank Holiday weekend is likely to start early as good weather will see people setting asap on their 16.5 million or more...

 Read Full Article
Don't Let Driving Cause The Summertime Blues

The RAC is urging drivers to check their vehicles before setting out in the heat - and to be aware that heat can cause tiredness and tiredness can increase the likelihood...

 Read Full Article
Jumping RAC Flash - Patrols Get EV Rescue Charger

In readiness for the electric vehicle boom, the RAC has developed the first lightweight mobile electric vehicle charger capable of giving stranded out-of-charge cars a...

 Read Full Article
The Budget 2018 - 24 Things You Need To Know

The Chancellor has presented his Budget to Parliament – here's a summary of what was announced...but we've tried to put it in order of relevance to the FM...

 Read Full Article
Pothole Breakdown Menace Doubles

Drivers are more than twice as likely suffer the fury of a  breakdown due to hitting a pothole than 12 years ago and the UK’s perennial pothole problem...

 Read Full Article
Did You See The Kitten? Keep Your Eyes On The Road - And Off The Dog

The DVLA has asked drivers to look again at the new EYE 735T campaign; Peugeot have a system that identifies when a driver takes their eyes off the road; and the RAC says...

 Read Full Article