The end of cheap fuel has arrived, with petrol prices going up by 3p per litre on average in March – the first increase in eight months.
Diesel prices also saw an increase of nearly 4p per litre, says RAC’s Fuel Watch, as forecourts pass on a rise in oil prices.
While this does signal the end of fuel for less than £1 per litre, the RAC says we shouldn’t start panic buying fuel.
RAC fuel spokesman Simon Williams said: “We hope the rebound in pump prices will be limited by the fact that the Organization of the Petroleum Exporting Countries (OPEC) will not want to let the price go too far back up.”
If the price of oil goes back above $60 a barrel, US fracking becomes financially viable – something that will undermine the organisation’s work at safeguarding their market share.
Williams added: “It looks as though we are heading towards a new norm of the oil price fluctuating between lower and upper limits of $35 and $55 a barrel.
“This means that motorists should hopefully not see the eye-watering prices they were paying at the pumps in April 2012 when the average price of petrol was 142p and diesel was close to 150p per litre. Motorists will also be relieved that the Chancellor saw sense and listened to the RAC and other campaigning groups by extending the freeze on fuel duty in his Budget.”
Around the UK, Fuel Watch reveals that Wales saw the biggest increase in petrol prices last month – rising from 101.40p at the beginning of the month to 105.10p at the end.
Drivers of diesel cars were hardest hit in East Anglia, however, with prices increasing from 101.49p to 105.37p.