Unleaded petrol pump

Fuel prices rise again despite wholesale cost falls

Unleaded petrol pumpFuel prices rose again in September 2017, the third month of increases in a row, despite the wholesale price of fuel actually falling. Petrol and diesel are now as expensive now as they were back in March.

A rise of 0.8p a litre for petrol and 1.3p a litre for diesel means both have now gone up by 2.5p a litre since the end of June, reports RAC Fuel Watch. Your suspicions are thus confirmed: yes, prices at the filling station are on the increase.

But this month should be the last increase for a while, predicts the RAC. That’s because the wholesale price of fuel has fallen – the trade price of petrol dropped a full 6p a litre in September, for example.

So how much should they now go down by? If retailers were playing fair, at least 2p a litre off the price of unleaded, reckons RAC fuel spokesman Simon Williams. “This would be good news as it would drive the price of unleaded down from 119p a litre towards 117p.”

It’s not such good news for diesel car drivers, though. “Unfortunately, the wholesale price of diesel is static so we won’t be seeing any cuts there.”

Williams also points out the price of a barrel of oil has actually gone up 10 percent, to nearly $60 a barrel: that’s the highest oil price since back in March 2015. So what’s saved us from further increases in the price of fuel? The gaining strength of the pound.  

It means the price of an average family car tankful of 55 litres is now £65.55 for petrol and £66.17 for diesel. Here’s to that falling again in the next few weeks.

UK average fuel prices – September 2017

Unleaded: 119.2p

Diesel: 120.3p

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