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Fuel prices rebound in August

Average pump prices rose in August, despite a price cut at the start of the month, latest figures from the RAC Fuel Watch indicate.

Fuel pump

Fuel prices rose in August despite a supermarket price cut at the start of the month

The data shows a litre of unleaded sold for an average of 111.5p at the end of August, up 0.33p on the price at the start of the month. The average price of diesel meanwhile rose 0.77p, finishing the month not far off a 2016 high at 112.81p.

The slight increases cancelled out the fall in the average price of both fuels that took place in July and has been triggered by the rising price of a physical barrel of oil, up $6 (or 15%) in August and ending the month at $46.28, albeit down from the mid-month high of $49.78.

Commenting on the outlook for the coming weeks, RAC fuel spokesman Simon Williams said: “There has been much speculation that the Organisation of Petroleum Exporting Countries (OPEC) might agree a curb on oil output, together with some non-OPEC members such as Russia, which could lead to price rises. But there has been this sort of speculation before and to date, no caps on production have been agreed and supply is still outpacing demand meaning the oil price has remained relatively low. It remains to be seen if, following a planned meeting in Algeria in late September, anything concrete is agreed which may give us a clearer idea of where oil prices, and therefore fuel prices, might be heading into the end of the year.”

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Natalie Middleton

Natalie has worked as a fleet journalist for nearly 20 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 edits all the Fleet World websites and newsletters, and loves to hear about any latest industry news.