Drivers and fleets are being warned to brace themselves for record-high fuel prices after retailers said pump prices are set to rise in the coming days.

According to the Petrol Retailers Association (PRA), the current records of 142ppl for petrol and 148ppl for diesel set in April 2012 are almost certain to be eclipsed before the end of October

According to the Petrol Retailers Association (PRA), the current records of 142ppl for petrol and 148ppl for diesel set in April 2012 are almost certain to be eclipsed before the end of October. Experian Catalist UK averages for yesterday (19 October) were 141.35ppl and 144.84ppl respectively.

It’s the latest warning on fuel prices, following the RAC’s announcement earlier this week that petrol prices were only 2p off the record high seen in 2012.

Brian Madderson, chairman of the PRA, said the primary reason for the price rises was the rise and rise of crude oil costs, which recently hit $US 85/barrel for Brent Crude. This is up more than 50% since January 2021 and has been caused by a cutback in production from OPEC countries and Russia at the same time as the global economies are staging a rapid economic turnround from the global pandemic.

He cautioned: “There is no immediate sign of a change to this position and some analysts have talked about further oil price rises to $US100/barrel by Christmas.”

Madderson also said that UK drivers were currently benefiting from average pump prices being softened by some of the largest retailers who typically benefit from a three- or even four-week lag to their delivered fuel prices. Two major grocery retailers in Belfast were vying for business last week by offering fuel at below standard wholesale cost with pump prices as low as 125.9ppl for petrol and 130.9ppl for diesel.

Compounding the issue is the increased competition for road and heating fuels globally; S&P Global Platts told PRA there is stronger demand for gasoline in the US and in the petrochemical sector, while diesel is also being hit by limited refinery output coupled with stronger demand across Europe and a boost of demand from the heating fuels, lifting values.

Earlier this week, the RAC said the Government should do whatever it can to help ease the burden of rising fuel prices on drivers and added that a VAT cut might be the most practical route.

Fuel spokesman Simon Williams said: “It might be most effective for the Government to consider temporarily cutting the level of VAT on motor fuel to help hard-pressed drivers. While there have been calls for fuel duty to be cut in the past, there is a real risk that any such cut could be swallowed up by retailers rather than benefiting drivers. As VAT is charged on the final cost at the pumps, drivers would see the benefit immediately.”

He added: “With just two weeks to go until COP26, the uncomfortable truth for the Government is that petrol prices are now reaching unprecedented levels and, along with rising domestic energy prices, will be putting a huge financial strain on households that depend on their vehicles and, in turn, the economy.”