Petrol and diesel pump prices set to rise as oil hits 13-month high

Petrol and diesel pump prices could rise by 10p per litre as the price of oil hits a 13-month high.

Analysts are predicting dramatic fuel price hike as the price of a barrel of oil is set to soar from $64 to $80.

The RAC is warning that UK drivers need to brace themselves for further potentially dramatic pump price increases.

Having dropped to just $13 last April, the price of a barrel of oil has now recovered, jumping by $20 in three months. Some analysts are now predicting oil could reach $80 a barrel this year, a price last seen in October 2018, and petrol prices could rise to around 130p and diesel to 134.5p based on today’s exchange rate.

At $100 a barrel – a price that JPMorgan has said is a possibility next year – petrol and diesel could hit records high of 143p and 148p respectively.

RAC Fuel Watch data shows that petrol prices have already been rising for 13 straight weeks, with a litre now 8.03p more expensive than November 22, 2020, at 121.84p per litre.

The situation with diesel is even more pronounced, with prices now having risen for 14 weeks (up 7.68p since November 15, 2020) at 124.91p per litre.

RAC fuel spokesman Simon Williams said: “When the pandemic hit last year, the effect on forecourt prices was nothing if not dramatic – those still driving through March and April paid less to fill up than they had done since mid-2016, when the price of oil plummeted as a result of deliberate over production.

“But by the summer the oil price had rebounded and today is at a level not seen since the start of 2020, meaning storm clouds are once again gathering over UK forecourts. Ironically and rather unfortunately, as economic confidence grows as measures to combat the coronavirus take effect, it’s likely to mean drivers end up paying more to fill up in the coming weeks.

“With the Chancellor’s Budget now less than two weeks away, the last thing drivers, and possibly the economy, need is a fuel duty increase – not least as petrol prices have now been rising for 13 consecutive weeks. A hike in duty at a time of rising fuel prices could put unprecedented pressure on lower-income households and might have the negative effect of forcing everyone who depends on their cars to consider cutting back on other spending.”