Updated: Winter fuel price fall has ‘come to an end’

A gradual reduction in petrol and diesel prices since October has come to an end, as average fuel prices being to rise.

RAC Fuel Watch data reveals that pump prices "bottomed out" at the end of January, with petrol averaging 148.89p per litre and diesel costing 170.37p.

Price reductions at forecourts across the UK ground to a halt last week due to wholesale prices starting to slowly rise again,

Over a nine-week period between mid-October and mid-December 2022, wholesale petrol costs tumbled by 23p per litre, leading to cuts of up to 18p at the pumps.

Wholesale prices are now on the rise, last week hitting 115.5p for petrol and 129.47 for diesel.

RAC fuel spokesman Simon Williams said: “Although January saw fuel prices fall for the third month in a row, there is now more cause for concern than celebration as petrol has already begun to creep back up very slightly.

“Monthly reductions of 3p for petrol and 4p for diesel were welcome but sadly the first month of the year saw the wholesale price of petrol rise by 2p and diesel by 3p. Despite this, while unleaded has been overpriced for months due to the biggest retailers refusing to lower their prices in line with the lower wholesale price, diesel is still too expensive even after factoring in the slight wholesale uptick.

“As always drivers’ fate at the pumps very much depends on what happens with the price of oil. But with the barrel now trading consistently well above $80 and analysts predicting a rise to $90 due increased demand from a re-opened China following the end of its zero-Covid policy, there is a very real risk that we could see petrol prices go back up to an average of 155p all too quickly. Eyes will also be on the Chancellor next month when he delivers his Spring Budget, so we hope he refrains from pouring fuel on the inflationary fire by hiking duty."