Fuel prices shot up again in September, prompting RAC claims that drivers are being overcharged for petrol.

Petrol pump prices increased “unjustifiably” by another 4.5p in September, the RAC says

The average price of diesel rocketed by more than 8p a litre last month while petrol increased “unjustifiably” by another 4.5p.

Diesel shot up from 154.78p at the start of the month to 163.11p by the close (8.33p) – making for its third monthly increase in a row and its fifth biggest monthly rise since 2000.

Unleaded went up from 152.49p to 157.01p (4.52p), its fourth monthly jump running and the 13th biggest in the last 23 years.

This follows the rises in August, when petrol went up by nearly 7p and diesel by another 8p.

Diesel is now nearly 17p more expensive that at the start of August, while petrol is up 11p but “is at least 7p overpriced”, according to the RAC.

The pump price rises follow global oil production cuts by OPEC+, which have driven the cost of a barrel close to $100. Combined with the weaker value of sterling – which makes wholesale fuel, which is traded in dollars, more expensive to buy in the UK – and it’s resulted in fuel prices soaring.

But RAC fuel spokesman Simon Williams has also accused retailers of not playing fair with drivers.

“Our analysis of RAC Fuel Watch wholesale and retail data shows that petrol is currently overpriced by around 7p a litre, although the price of diesel is likely to go up further still in the coming weeks.”

And Williams said increased retailer margins on petrol were “worrying”, considering the big four supermarkets were told off by the Competition and Markets Authority for overcharging drivers by £900m in 2022.

“While many have voluntarily started to publish their prices ahead of being mandated to in law, we still have a situation where wholesale price changes aren’t being fairly reflected on the forecourt,” he added.

“In the last two weeks the wholesale cost of diesel has become 10p a litre more expensive than petrol, yet the gap at the pumps is only 5p. If retailers as a whole were playing fair with drivers, petrol would be at least 7p cheaper than it is now, down to around 150p from its current average of 157p.”

Williams also pointed to the CMA’s recommendation for a price monitoring body, “which this situation demonstrates the need for as some retailers are clearly inflating the price of petrol”.

He added: “The setting up of this body cannot come soon enough, as long as it has some form of teeth to keep retailers in line.”

Half of motorists concerned by rising fuel prices

New research has found one in two drivers (51%) say rising fuel prices are the biggest challenge in the next 12 months.

The survey by Close Brothers Motor Finance found fuel prices were a higher concern than  car insurance hikes (34%), the cost of purchasing a new car (22%), and road tax hikes (19%).

The poll of 2,000 drivers also found one 10 (11%) are having to ask people to contribute towards the cost of petrol when giving them a lift. And more than a quarter (27%) have had to cut back on how often they drive their car.

Lisa Watson, director of sales at Close Brothers Motor Finance, said: “The ongoing hike at the pumps will add further pressure to drivers who already feel they’re faced with increased costs from all lanes.

“Consumers all over the country are looking at ways to tackle the ongoing cost-of-living crisis. With high interest rates, inflation and the increasing prices at petrol pumps – many are now having to explore other measures to stretch their finances further – including charging loved ones for fuel when giving them a lift.”