Fuel prices hit three-year high
Average petrol and diesel prices hit their most expensive levels in three years last month following more than a 2p per litre rise.
The data from RAC Fuel Watch shows a litre of unleaded went up from 118.43p to 120.78p (2.35p) and diesel from 120.96p to 123.18p (2.22p) as a result of oil spending the whole month above the $60 a barrel mark. However, the strengthening of the pound helped keep the increase in check.
Across the big four supermarkets, petrol increased by 2.37p a litre from 114.91p to 117.28p, but the increase in diesel was less than the figure for all retailers – 1.72p a litre compared to 2.22p – from 117.78p to 119.50p.
Last month also saw OPEC, the Organization of the Petroleum Exporting Countries, agreed to the production cut being extended from its scheduled conclusion at the end of March to the close of 2018.
RAC fuel spokesman Simon Williams said: “The price we will pay for fuel at the pump into 2018 very much hinges on how effective OPEC’s production cut continues to be in reducing the global glut of crude oil. The increased barrel price this is designed to create may also work against the group as it makes fracking for oil in the US more financially viable, which in turn may lead to America increasing its production and filling the gap from the cuts. If this happens it should mean forecourt prices won’t go shooting up.”For more of the latest industry news, click here.