Yahoo Finance UK petrol prices rise as oil price jumps to $85
High commodity costs hit consumers
Commuting got more expensive again in July as petrol prices rose for the second consecutive month while diesel remained stable, according to new data from RAC Fuel Watch.
The rising price at the pumps comes as the price of oil has been trading above the $80 level, even hitting $85 a barrel, with the cost of the commodity being passed down the chain to consumers.
The question is, will sellers take lower margins as the wholesale costs climb or will consumers feel more price rises?
As it stands, a litre of unleaded petrol across the UK costs 145p, up a penny since the start of July and nearly 2p since the beginning of June.
Meanwhile, diesel stayed the same at 146p, ending a run of eight months of falling prices.
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This means filling a tank for a 55-litre family car costs around £80 for either fuel — £80.21 for diesel and £79.75 for petrol.
“Worryingly though, the wholesale price of petrol rose 6p a litre from 19 July on the back of the rising cost of oil with retailers wasting no time in passing this on to drivers as the average price has increased by nearly 2p in that time,” the RAC said.
“July marks a turning point in the year for fuel prices as diesel stopped falling while petrol recorded its second consecutive monthly increase. But more concerning is the fact that oil has gone back up to $85 a barrel, causing wholesale prices to rise significantly,” RAC fuel spokesman Simon Williams said.
“While we’re fortunately not in the kind of upward price spiral we experienced last year, it feels like the better times at the pump are over for the time being. If oil producers continue to curb production then bigger forecourt price rises could be on the cards.”
Petrol and diesel are still cheaper in Northern Ireland despite prices rising by 1p and 3p respectively.
“Unleaded is 4p less than the UK average (£2.20 a tank) and diesel almost 5p (£2.75 a tank). Sadly, this shows drivers on this side of the Irish Sea are still losing out. If and when we finally see the two sets of prices coming together we hope it will be as a result of lower forecourt prices in the rest of the UK,” Williams added.
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