Warning issued to anyone driving a petrol car

Drivers of petrol cars are being warned about a sudden increase in fuel prices at the pump after months of price drops.

Breakdown experts the RAC have revealed that the average cost of petrol in the UK has increased by 2p a litre thanks to ‘tensions in the Middle East’, a sudden reversal from the past three months of declining fuel prices. It said that unleaded petrol now costs 134.17p per litre on average, up 2p a litre since June 1.

The RAC said that supermarket petrol prices rose less steeply than the average, with a 1.3p increase from 128.96p to 130.26p.

The reason for the increase is due to the cost of oil increasing, relating to the conflict in the Middle East. It said: “The primary cause of drivers paying more at the pumps was the cost of a barrel of oil jumping from around $64 in late May to a high of almost $79 on 19 June, following escalating tensions between Israel and Iran.

Fears that Iran – one of the world’s biggest oil-producing nations – might block oil exports along the Strait of Hormuz on its southern coast injected uncertainty into the market, pushing oil prices up.

“However, contrary to what was predicted by some analysts, the oil price has since fallen and ended the month at $67, only a few dollars more than it was at the start of June.

“The RAC hopes that pump prices will now stabilise, meaning drivers don’t see any further immediate increases at forecourts this month. But much depends on the level of margin retailers decide to take on the fuel they sell to drivers. This is something of a concern as the Competition and Markets Authority’s latest report into the sector, published on Monday, once again called out high retailer margins and a lack of competition as reasons why pump prices aren’t lower.”

RAC fuel spokesperson Simon Williams said: “The arrival of summer has brought some wholly unwelcome increases to pump prices, with retailers wasting no time in putting them up following increased tensions in the Middle East. Unleaded and diesel are now both at their highest levels since late April, although we see no reason for further increases as wholesale prices have come back down again.

“July will be a telling month – will retailers halt further price rises, or even cut them if wholesale costs cntinue to slide? Or will drivers be stuck having to pay an elevated amount for the foreseeable future? This is particularly topical given it was only two days ago that the Competition and Markets Authority noted how weak competition within the fuel retailing market is.

“Thankfully, we’re a long way off the record pump prices of exactly three years ago – when the Russia/Ukraine conflict saw the average price of unleaded hit an unprecedented 191.53p a litre and diesel climb to 199.21p, with some retailers charging well in excess of £2 a litre.

“But given fuel represents a substantial chunk of most households’ monthly outgoings, it remains the case that drivers need to be guaranteed a fair deal every time they fill up. The creation of a government-backed Fuel Finder scheme by the end of this year should make it easier to find the cheapest forecourts. But just because the price is cheaper depending on where you buy it doesn’t mean it’s as low as it could be. That depends on retailers more accurately reflecting wholesale price drops and ending so-called ‘rocket-and-feather’ pricing.”