Error parsing XSLT file: \xslt\FacebookOpenGraph.xslt Oil price jump brings increased fuel costs
Cookies on Businesscar

We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we will assume that you are happy to receive all cookies on the Business Car website. However, if you would like to, you can change your cookies at any time

BusinessCar magazine website email Awards mobile

The start point for the best source of fleet information

Oil price jump brings increased fuel costs

Date: 21 February 2024   |   Author: Sean Keywood

The average price of diesel and petrol at UK filling stations has increased by 4p and 3.2p per litre respectively in the last three weeks, according to the RAC.

The motoring organisation said these increases had marked an end to a downward trend in the price of both fuels, with a litre of diesel having fallen by 15p between October and the end of January, and a litre of petrol having fallen by 17p.

The RAC said the increases had been brought about by a jump in the price of oil, which has been trading above $80 a barrel for most of the last four weeks, having been well below that for the previous seven.

RAC fuel spokesman Simon Williams said: "News that fuel prices have bottomed out and are now on the rise again is bad news for drivers, and possibly the economy and future inflation rates, too.

"While we're not expecting prices to shoot up dramatically, it appears that oil is trading up, which in the absence of a stronger pound, means wholesale fuel costs more for retailers to buy in. The result is higher prices at the pump and more expense for the every-day driver.

"The Red Sea attacks by Houthi rebels, which are forcing tankers to avoid the Suez Canal and instead go round South Africa's Cape of Good Hope, are clearly playing their part, but so have global refinery maintenance closures, the start of America's driving season, and UK retailers buying more fuel stocks ahead of the Budget to protect against a possible fuel duty hike by the Chancellor.

"Despite these factors, we ought not to see forecourt prices go up too much more from where they are today, but a lot depends on how much margin the biggest retailers decide to take."