Petrol price rise looms following October’s fall
The cost of petrol fell in October after three consecutive months of increases but price rises look imminent, according to the RAC.
A 6p reduction in the price of wholesale petrol was passed on later in the month by retailers, bringing the price of unleaded down from 118.84p at the start of the month to 118.17p by the end – a fall of 0.67p. In contrast, diesel went up the fourth month in a row, increasing 0.59p from 120.21p to 120.80p a litre.
Although sterling remained comparatively strong against the dollar averaging $1.32 in October, the RAC said it’s unlikely to stop some pump price rises due to the rising cost of oil – last month saw the cost of a barrel of oil rise 9% to finish the month at $60.98.
RAC fuel spokesman Simon Williams said: “Inevitably, this increase will be passed on to motorists on the forecourt far more quickly than the cuts were made last month, but that is unfortunately the nature of ‘big’ fuel retailing: pass on wholesale rises quickly and cling on to savings for as long as possible. Motorists may yet be spared from large pump prices if the United States takes advantage of the higher oil price to bring more fracking rigs online as this will bring more product on to the market, no doubt easing the barrel price.”
The RAC also called on the chancellor to keep the fuel duty rate unchanged in the Budget later this month.