Fuel prices rose for the second consecutive month in July, adding nearly £2 to the cost of a full tank. This is according to new RAC Fuel Watch figures.
The price of unleaded increased to 114.27p from a low of 111.06p at the start of the month. This means it now costs £62.58 to fill a typical tank with unleaded – an increase of £1.77.
There’s better news for diesel drivers, although a full tank still costs £1.62p more now than it did at the beginning of June. The cost of a litre diesel went up from 115.09p to 118.04p.
The price rises come despite the wholesale price of petrol falling by 2p across the month. The cost of diesel also fell, but by just 0.22p. Retailers should be reducing their pump prices over the next week or two, says the RAC.
RAC fuel spokesman Simon Williams said: “July was another bad month for drivers with a 3p a litre rise in the price of fuel. This means petrol’s 7p a litre more expensive than it was at the end of May (107p on 31 May) and diesel is 6p more (111.86p on 31 May), something drivers will no doubt have noticed as each complete fill-up is costing almost £2 more.
“The higher prices at the pump have been driven by the cost of oil increasing steadily to around $42 a barrel from a low of $13.21 in April. But drivers may well be given some respite as oil producers are planning on ramping up production despite the risk of renewed lockdowns around the world.
“This could easily lead to supply outstripping demand and therefore a reduction on the forecourts of the UK. As it there is some scope for retailers to already be reducing their prices. If they play fair with drivers we ought to see 2p a litre come off the price of unleaded and nearer 4p come off diesel.”
According to the RAC, Asda is the cheapest supermarket for fuel, with a litre of unleaded costing 108.63p a litre. The others average just over 109p a litre.
Asda is also the place to go for the cheapest diesel, with a litre costing 112.68p. The price at Sainsbury’s was 113.39p, while Morrisons and Tesco were both 114p.
There are a number of ways to find cheaper fuel. These include using a price comparison website, the Waze app or a connected car. Click here for more advice.