Petrol and diesel prices rose again in April as a recent 25% increase in the price of a barrel of oil continues to have an impact at the filling station.
More than 3p a litre was added onto the price of petrol and diesel last month alone, with both diesel and unleaded petrol going up to 108.9p a litre.
It means forecourt prices are now the highest they have been since November 2015.
So, should we be worried by these fuel price rises? Well, for the moment, no, reckons RAC Fuel Watch spokesman Simon Williams. “The world is still producing too much oil, which means prices should not rise too much further, and may stabilise or even start to fall again.”
It’s strange times for the world oil market, he says. OPEC has been overproducing for some time to try and calm the U.S. fracking industry. This has worked to an extent, and reduced production in Iraq, Nigeria and the UAE also helped push the price up in April.
A barrel of oil now costs $45.49, up $9 in one month.
“But, if the barrel price reaches $50, drilling would become a profitable option again for U.S. shale produces and OPEC’s long-term efforts to maintain its market share would be undermined.
“For this reason it seems unlikely that the oil price will increase too much more.”
Which is good new for British motorists, given how the average price of filling the 55-litre tank of an average family car has gone up £3.29 since 1 March…