Petrol drivers warned ‘good times are over’ as pump costs could spike in weeks
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Petrol drivers could see “big forecourt price rises” within weeks as costs rise for the second successive month.
The average cost of just one litre of unleaded petrol now stands at 145p, an increase of around 1p on average since the start of last month and 2p higher than in June, according to RAC Fuel Watch.
However, the wholesale price of petrol soared by 6p in July due to the rising cost of oil which could soon be dramatically passed to road users.
The price of oil was up $10 a barrel in July pushing the total price to a staggering $85.56.
These figures have not been seen since mid-April which is likely to cause some sting for ordinary motorists.
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Retailers have already passed some of this onto drivers with costs up around two pence but sharper rises could follow.
Among the bad news for petrol owners, diesel drivers are not expected to share the same pain.
Average prices have remained the same at 146p per litre but the stagnation does end eight months of back-to-back price drops.
RAC fuel spokesman Simon Williams said: “July marks a turning point in the year for fuel prices as diesel stopped falling while petrol recorded its second consecutive monthly increase.
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“But more concerning is the fact that oil has gone back up to $85 a barrel, causing wholesale prices to rise significantly.
“While we’re fortunately not in the kind of upward price spiral we experienced last year, it feels like the better times at the pump are over for the time being.
“If oil producers continue to curb production then bigger forecourt price rises could be on the cards.
“This has led to a squeeze on retailer margins which were too large, so we’re currently seeing a return to them making an amount per litre more similar to their longer-term averages.
“The big question now is how quickly and how far pump prices rise.”
The RAC is keen to highlight that prices are still “considerably cheaper” in Northern Ireland despite rises across the Irish Sea
Unleaded petrol is still around 4p cheaper on average with diesel 5p less than the rest of the UK.
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