Drivers See First Fuel Price Rise Since July

Petrol prices rose last month for the first time since July, according to RAC Fuel Watch.

It (Other OTC: ITGL - news) said the average price of a litre of unleaded was 101.93p by the end of February, up 0.66p over the month. Diesel was up 1p at 101.18p.

February saw a sharp decline in the value of sterling against the US dollar, the currency in which oil is priced. Meanwhile, the price of a barrel of Brent crude saw a recovery.

However, the wholesale cost of fuel actually fell due to increased production - which should keep a lid on prices in the forecourt, the RAC (Taiwan OTC: 2237.TWO - news) said.

Petrol prices had been falling every month since last summer amid tumbling global oil prices. In many supermarkets the cost of a litre of fuel remains below a pound.

RAC fuel spokesman Simon Williams said: "The oil price had been consistently around $30 for most of the month but in the last few days of February rose to around $36 - a price we haven't seen since the beginning of the year.

"While it's disappointing for motorists that the average price of petrol has gone up for the first time in seven months, the supermarkets have held their prices and the wholesale price of unleaded is still low enough to keep petrol under £1 a litre at their pumps.

"If it proves to be the case that oil prices have bottomed out, the RAC will be monitoring the effect on pump prices even more closely for any sign of the infamous 'rocket and feather effect' where prices go up far faster than they came down."