Fuel prices on the rise but fall expected in coming days

3 October 2017

Drivers could be in for some petrol price relief in the next few days, despite prices having risen of late.  

According to motoring organisation the RAC, the cost of fuel rose for the third consecutive month in September. The average price of a litre of unleaded petrol went up by nearly 1p (0.83p) to 119.19p, while diesel rose by 1.34p to 120.31p.

Both fuel types are now at their highest price since March this year. Since June alone both have risen by 2.5p per litre.

However, the RAC expects unleaded (not diesel) prices to fall in the coming days due to the strengthening pound. Even though wholesale prices have risen by 10% since 2015, recent gains made by the Sterling have accounted for a 6p reduction in the wholesale price of a litre of unleaded petrol since the beginning of September.

The organisation expects retailers to pass on this price reduction to motorists within days. RAC fuel spokesman Simon Williams comments: “With oil up to its highest price since early July 2015 motorists have been saved from steeper prices by the pound which has gained in strength. Without this drivers would be paying far more for their fuel. The late September petrol and diesel cut from the supermarkets was a demonstration of how important a favourable exchange rate is on the forecourt.

“We saw the supermarkets cut 2p a litre off petrol in late September as a result of the lower wholesale price. But there is now scope for a further round of pump price reductions as wholesale unleaded is 6p a litre cheaper than it was at the start of September.

“If the big retailers were to play fair with motorists we would see at least another 2p a litre come off unleaded at the pump. This would be good news as it would drive the price of unleaded down from 119p a litre towards 117p. Unfortunately, the wholesale price of diesel is static so we won’t be seeing any cuts there.”

Currently the average 55-litre family car costs £65.55 to fill, whereas in early July the same car could have been filled for £62.88. Diesel has risen in the same time frame from £63.26 per car to £66.17.

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