Workbench Logo
Workbench Logo
Workbench Logo
Workbench Logo
Workbench Logo

Fuel prices reach two-year high

Fuel prices continued to rise this month, driven by the weaker pound as well as increasing oil prices, leading to a two-year high.

Fuel pumps

The weaker pound has been a major factor in rising pump prices as all fuel is traded in dollars, including fuel produced in the UK.

RAC Fuel Watch data shows average forecourt prices hit £1.20 for unleaded and £1.22 for diesel on 14 February – the highest price since December 2014.

Spokesman Simon Williams said: “As a net importer of fuel the UK is at the mercy of the international exchange rate. Since the June 2016 referendum we have seen approximately eight pence per litre added to fuel prices of which we estimate over four pence can be attributed to the impact of the collapse in the pound against the dollar. This combined with a steady increase in the price of oil is a double whammy for drivers pushing up UK pump prices.

“The OPEC oil producing countries have remained bullish about their commitment to production cuts and their eagerness to stand by them. Compliance certainly seems to be holding and Saudi Arabia has described them as the deepest cuts in over eight years. This will maintain upward pressure on oil prices and we are unlikely to see any relief for six months or more as US shale oil producers gear up their own production.”

He added: “Motorists will fear any further statements which undermine confidence in the pound as this will have an immediate and decisive upward impact on fuel prices which represents a significant proportion of their household budgets.”

For more of the latest industry news, please click here.

Related Post

Natalie Middleton

Natalie has worked as a fleet journalist for 14 years, previously as assistant editor on the former Company Car magazine before joining Fleet World in 2006. Prior to this, she worked on a range of B2B titles, including Insurance Age and Insurance Day. Natalie works across the magazine portfolio and updates the company websites with daily news, interviews and road test content.

Strict Standards: mktime(): You should be using the time() function instead in /var/www/vhosts/ on line 347