Fuel surpasses last week’s record prices, reaching unprecedented 149p per litre
Fuel prices have surpassed those of last week – which saw forecourts charge motorists 148p per litre – and reached record highs.
According to RAC data, yesterday petrol prices reached 149.12p per litre while diesel was at 152.58p, meaning that it costs respectively £82 and £84 to fill a vehicle.
“While the price of oil is still close to $100 a barrel wholesale fuel prices don’t merit further retailer rises across the board at the pumps,” said RAC fuel spokesperson Simon Williams.
“We realise that smaller retailers who don’t buy fuel as frequently will be hit by higher wholesale costs, but the biggest retailers who buy all the time shouldn’t currently be increasing their forecourt prices. We urge them to play fair with drivers at this difficult time.”
Susannah Streeter, senior investment and market analyst, told City PM that petrol and diesel prices will likely have a knock-on effect on consumer confidence.
‘’Petrol and diesel have hit fresh highs at the pumps causing yet more pain for consumers already caught in the grip of the cost of living crisis,” she said. “
While current tensions in Ukraine are still weighing on the price of oil, making it difficult to predict this week, investors believe the prospect of easing oil sanctions against Iran could improve the current situation, City PM reported.
“The extra pounds on bills are piling up for hard hit families, with the increase in fuel set to hit lower income households harder as a higher proportion of their outgoings will be spent on travel costs.”
“There is now a glimmer of hope that more oil may come on to the market from Iran due to a possible nuclear agreement with the US to end sanctions,” Williams added.
According to Craig Erlam, financial analyst at Oanda, prices will continue to rise as a result of geopolitical turmoil. “This is also happening at a time when countries are struggling to hit output targets and that shortfall, alongside strong demand as countries have emerged from the pandemic, is the cause of these high prices.
“That’s showing little sign of improving which could enable prices to keep rising.”
On 14 February, petrol prices surpassed 148p per litre for the first time ever, surpassing November record price of 147p per litre.