Fuel prices have reached their highest level in more than two years following a 2p per litre rise in January.

Fuel prices have reached their highest level in more than two years.

Latest RAC Fuel Watch report data shows the increase in pump prices comes despite the wholesale cost of fuel staying stable, with the organisation saying this indicates price cuts are needed.

A litre of unleaded now stands at 120.01p and diesel at 122.30p – at the start of the year it was 117.90p and 120.35 respectively.

The latest pump price rise comes hot on the heels of a 3p a litre increase in December, making for a 5p a litre increase since the beginning of December.

RAC fuel spokesman Simon Williams commented: “The January rise is harder to swallow as there is a saving from wholesale prices that retailers should be passing on a little faster than they are.

“It is particularly worrying that the supermarkets have increased their prices by an average of 3p a litre in January with one adding nearly 5p a litre.

“As the wholesale price stands currently we would be expecting to see average prices come down by over a penny a litre in the next fortnight.”

Williams added: “The oil production cuts made by the Organization of the Petroleum Exporting Countries together with non-OPEC countries have definitely led to a higher barrel price which in turn has translated to motorists paying more on the forecourt. But we are hopeful that the oil price will remain around the mid-$50 mark for some time meaning fuel prices should hover around the current level for some time, providing the exchange rate doesn’t worsen.”

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