Petrol and diesel prices have been falling for seven months running now, but the days of the sub-£1 per litre may now be numbered as oil prices start to show signs of rallying.
The RAC says that $26 for a barrel of crude oil is a 12-year low that was reached last week – but since then, prices have rebounded: even by the end of January, they were back up to $33.
And the wholesale prices of diesel and petrol – the prices fuel retailers pay for the raw stuff – have already begun to rise as a result.
If the market continues to creep up, says fuel spokesman Simon Williams, “wholesale costs will rise further which will in turn lead to pump price increases.”
But it shouldn’t be much, he adds. Prices may go up but they may well come down again, due to the notorious volatility of the oil market. “Even if there is a rise in the oil price, it seems unlikely that it will be drastic.”
The bigger worry for motorists, says Williams, should be the exchange rate. The pound has weakened “significantly” against the dollar and, “with oil traded in dollars, this could prove to be even more harmful if the pound continue to lose value against the dollar while the oil price goes up.”
Quick, get that big V8 and enjoy it while you can still afford to…