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.
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.”
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