Fuel prices see one of ‘biggest ever’ monthly rises
Thu, 07 Sept 2023
The rising cost of oil is now filtering through to the forecourts with motorists seeing the price of both petrol and diesel go up by one of the biggest-ever amounts on record.
Petrol prices went up by almost 6p a litre in August 2023 – the fifth biggest monthly rise in over two decades according to RAC Fuel Watch.
Diesel price rises were even sharper, going up by 8p a litre.
The increases mean the average price of petrol is now 152.2p a litre, while diesel now costs 154.3p a litre. This has added £4 to the average tankful of petrol, and £4.50 to the average diesel car fill-up.
"Seeing £4 or more go onto the cost of a tank in the space of just a few weeks is galling, particularly for those who drive lots of miles or run an older, less fuel-efficient car," said RAC fuel spokesman Simon Williams.
RAC data shows that the only time fuel prices rose more quickly in a single month were in the 2022 aftermath of Russia’s invasion of Ukraine.
Back then, oil prices hit a record $144 a barrel. They are now back below $100 a barrel – but they still rose a hefty $12 last month, to nearly $87 a barrel.
This is due to producer group OPEC+ reducing supply, and demand increasing due to the US summer driving season.
August fuel price rises could have been higher still, adds the RAC.
"While the increase is clearly bad news for drivers, it could have been far worse, had the biggest retailers not let their inflated margins from earlier in the year return to more normal levels as wholesale fuel costs went up."
The RAC claims they have been influenced by the Competition and Markets Authority’s investigation as, all of a sudden, margins are once again closer to their longer-term averages.
"It appears they used the wholesale price rise to subtly cover their tracks – after all, big reductions at the pumps soon after the CMA’s finding were announced would have perhaps been far too obvious a step.
"All we can hope is that this move by many big retailers back to fairer forecourt pricing remains when wholesale costs go down again. Only time will tell," added Williams.
