Petrol is now at its highest price for nearly eight years following eight straight months of increases at the pumps, data from RAC Fuel Watch has revealed on Saturday.
A litre of unleaded rose by 2.7p-a-litre from 129.52p to 132.19p in June, taking it to a price last seen in October 2013. Diesel went up 2.5p from 131.79p to 134.32p, which is the most expensive it has been since June 2019.
RAC says unleaded has sky-rocketed by 18p-a-litre from the start of November to the end of last month.
And the increase in costs at the pump look set to rise as the Organisation of the Petroleum Exporting Countries has told its biggest producers to increase outputs more slowly than expected in coming months, while rising global fuel demand causes supply to tighten.
Eight-year high for petrol prices: The RAC says average unleaded prices have risen for eight consecutive months and is now 18p-a-litre more expensive than in November 2020
Motorists filling up with petrol on 2 November 2020 would have paid an average of 114.12p per litre.
However, an average increase of 2.25p-a-litre each month since unleaded reach the highest level it’s been for almost eight years, adding £10 to the cost of filling the tank of a standard 55-litre family car in that period.
The June rise alone added £1.50 to a tank of unleaded with the cost jumping to £72.70, the RAC says.
The average cost of a complete fill-up with diesel is now £73.88 – an increase of £1.40 in the month.
The average price of unleaded at the country’s four big supermarkets now stands at 128.17p after going up 3.3p in a month. Diesel is 130.25p after a rise of 2.91p.
This makes a tank of supermarket fuel on average £2.20 cheaper than at other forecourts.
However, as highlighted by This is Money earlier this week, motorists using one Tesco filling station (in Stevenage) and many Sainsbury’s sites across the country are being warned that they will be stung with £99 pre-authorisation fees when using one of the pay-at-pumps, with money not being refunded into accounts for days, in some cases.
This is Money reported earlier this week about drivers filling up at Tesco and Sainsbury’s stations using pay-at-pump services are having £99 deposits forced on them
Fuel price experts say June’s pump price rises have been driven by a 10 per cent increase in the cost of oil which saw a barrel go up from $69.37 to $76.12 at the end of the month.
This in turn has led to a 3p a litre hike in the wholesale cost of petrol and a 2p jump in diesel (petrol 102.26p; diesel 101.76p).
How close are we to record highs?
Unleaded prices reached a record high in April 2012, of 142.48p a litre – or 10p more than current levels.
Diesel’s high came in the same month, at 147.93p a litre – or 13p more than today.
RAC fuel spokesman Simon Williams: ‘June proved to be a shocking month for drivers with not just the eighth straight monthly rise at the pumps, but a return to 132p-a-litre petrol –something we haven’t seen since October 2013.
‘And if an 18p-a-litre hike in cost over eight months isn’t bad enough it’s hard to see the increases coming to an end as the price of oil seems to be going up and up, with $6 being added to a barrel in June alone.
‘Compared a year ago oil is now $35 more expensive. What’s even more worrying is that some analysts are predicting an oil deficit by the end of the year, which could mean further relentless price rises in the coming months.
‘If oil and, in turn, fuel prices continue to go up the UK’s staycation summer could end up being very expensive for millions of people.’
Concerns have grown that fuel price rises will continue after reports that OPEC is to tell its biggest oil producers to increase outputs at a slower rate than expected
And it does appear that soaring pump prices will continue, following the latest reports.
OPEC+, the Organization of the Petroleum Exporting Countries and allies, resumed talks on raising oil output on Friday after the United Arab Emirates blocked a deal the previous day, creating a standoff that could lead to less crude in the market and further rise in prices.
Without a deal, the OPEC+ alliance could keep tighter restraints on output with oil prices now trading around $75 a barrel – more than 40 per cent up this year – while consumers want more crude to aid a global recovery from the Covid-19 pandemic.
The UAE put the brakes on a deal that had been pushed by top producers Saudi Arabia and Russia to increase output by two million barrels per day by the end of 2021 and extend remaining cuts to the end of 2022, instead of ending in April.