Prices at UK petrol pumps have risen for the fourth consecutive month, increasing by an average of 4.5p per litre last month, according to motoring group RAC. The cost of unleaded petrol rose from around £1.52 to £1.57 in September, resulting in the filling of a family car costing more than £86. The RAC blamed the increase on higher global oil prices, claiming petrol has been “overpriced”. Independent forecourts reject the claims, however, with the Petrol Retailers Association claiming margins are “under pressure” due to higher labour and energy costs as well as reduced sales.
Although the living cost in the UK is starting to ease slightly, with consumer inflation falling to 6.7%, rising prices at the pumps will cause additional pressure on household finances. The latest RAC data showed that petrol rose by 4.5p per litre on average last month, while diesel increased by 8p per litre. Diesel has risen from £1.54 to £1.63 per litre since the start of last month. Simon Williams, spokesman for RAC, stated that the group’s analysis showed that “petrol is currently overpriced by around 7p a litre”. He added that “if retailers as a whole were playing fair with drivers, petrol would be at least 7p cheaper than it is now”.
Gordon Balmer, executive director of the Petrol Retailers Association, countered the RAC’s claims, explaining that margins had “inevitably increased” due to higher running costs. Balmer criticised the RAC for trying “to whip up public anger by suggesting otherwise” and said it was “deeply irresponsible”. The RAC’s spokesperson, Williams, commented that it was “worrying that retailer margin across the UK is higher for petrol than it should be” following an investigation earlier this year by the Competition and Markets Authority. After this investigation, some retailers established a scheme to allow drivers to compare live fuel prices online, and the UK government plans to make the practice mandatory.
Fuel prices rose rapidly during 2021 and the first half of 2022, after a surge in oil prices, which saw Brent crude oil rise above $90 on 11 October. Prices fell back in late 2022 and the first half of this year before the recent uptick. Prices are expected to rise again due to the decision by Saudi Arabia and Russia to reduce oil production earlier in August. Wholesale fuel has also become more expensive due to the weaker value of sterling against the US dollar.
To reduce petrol consumption, drivers may need to moderate their speed, according to the RAC. The group states that driving at 45-50mph is the most efficient speed for fuel consumption. Other methods of saving petrol and diesel include switching off the air conditioning system, as additional energy is needed to power it, and checking tyre pressures frequently
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