Average petrol and diesel prices rose in January for the third month in a row following a 2% increase in the price of oil.

Fuel prices rose for the third consecutive month following a 2% increase in the price of oil

The RAC Fuel Watch data shows that unleaded increased 1.34p at the pumps to 122.24p per litre while diesel went up 1.56p to 125.04p per litre. This means the price of petrol has increased 4p a litre since October 2017 when it was around 118p. Diesel has gone up 5p a litre, rising from around 120p in October to 125p. Petrol is now at its highest point since late November 2014 and diesel the highest since early December 2014.

The average price charged by the big four supermarket fuel retailers suffered a bigger rise at 2p a litre, taking the average price of a litre of supermarket petrol to 119.76p and diesel to 122.45p.

RAC fuel spokesman Simon Williams said reductions could be in store in February as the RAC’s current two-week forecast shows reductions of a penny for petrol and two pence for diesel.

But he added: “Whether this will filter through at the pumps is questionable as retailers are generally loath to pass on wholesale savings when they consider them to be marginal.”