Petrol prices are continuing to creep up – and Brexit could be to blame

UK petrol station

The average cost of a litre of petrol hit 112.07p at the end of September – an increase of nearly half a penny since the start of the month, and just short of the 2016 high of 112.33p.

That’s according to data from the RAC’s Fuel Watch report, which also revealed that diesel hit a new high of 113.34p in September.

The organisation says it will now cost £61.63 on average to fill up a petrol-engined family hatchback – more than £5 extra for each fill-up compared to the start of the year. The equivalent diesel, meanwhile, will cost £62.34 to refuel – around £4 more than it did in January.

RAC fuel spokesman Simon Williams said: “A higher oil price, combined with a weakening pound, is forcing up wholesale fuel prices: the wholesale price of diesel is now nearly 9p higher than it was at the start of August, and petrol 7.4p higher. The effect of this to date has been gradually rising pump prices.”

The organisation says it doesn’t envisage an immediate hike in prices in October, but rising oil prices caused by a cut in production could have a larger impact on pump prices in the future.

“The new chancellor’s first Autumn Statement also looms next month,” adds Williams, “and the RAC hopes that he sees sense in committing to not increase fuel duty for the remainder of the Parliament – certainly compared to his predecessor’s track record on fuel duty, the new chancellor has a lot to live up to.”

Petrol prices could also be hit by the weakening pound – with sterling hitting a 31-year low against the dollar yesterday. Prime minister Theresa May dismissed concerns, telling reporters “currencies, of course, go up and down”.

Web editor at Drives a 1983 Austin Metro. Tweet me @MR_AndrewBrady.

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