19 September 2023

Fuel price warning as oil nears 100 dollars a barrel

19 September 2023

Motorists are being warned over rising fuel prices as the cost of a barrel of oil approaches 100 US dollars.

The RAC said drivers are “in for a hard time at the pumps” as increasing demand from China and production cuts by Saudi Arabia and Russia are sparking a hike in oil prices.

Brent crude, the oil price benchmark, ended Monday at 94 US dollars per barrel, its highest price since mid-November 2022.

Before the start of this month the highest oil price of the year was 88 US dollars in January.

If they were playing fair with drivers, they would be reducing their prices

The average price of a litre of petrol has already risen by 10p since the beginning of August to 155.5p, its most expensive level since mid-December last year.

RAC fuel spokesman Simon Williams said: “Diesel is set to jump in price from its current average of 159p a litre to over 170p.

“But the situation with petrol is different with RAC Fuel Watch data showing that prices on the forecourt are actually too high due to retailers taking bigger margins than normal.

“If they were playing fair with drivers, they would be reducing their prices rather than putting them up.

“However, if oil were to hit 100 US dollars, it should really only take the average petrol price up by another 2p.

“But if retailers remain intent on making more money per litre with increased margins then this could be closer to 160p.”

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