Estimated reading time: 2 minutes
Petrol prices rose by another 3.5p a litre in January 2021, the third consecutive month of fuel price increases.
The steep rise in January alone added nearly £2 to the price of an average 55-litre tankful of unleaded.
Petrol now costs 120p a litre, the highest price since before the first coronavirus lockdown in March 2020.
How to find the cheapest petrol and diesel near you
RAC Fuel Watch reports that a 55-litre tank of unleaded is now £8 more expensive than the May 2020 low.
Diesel prices also rose by more than 3p a litre, meaning diesel now costs 123.4p a litre.
Surprisingly, it is supermarkets that are leading the increase in fuel prices, say RAC Fuel Watch experts.
Fuel prices at Asda were hiked more than 5p a litre during January, although its unleaded is still the cheapest in the country, at 115.9p a litre.
Supermarkets sell 60 percent of all fuel sold in the UK – and the recent rises mean it’s now only 3p-3.5p a litre cheaper to use one, compared to the 4p-4.5p saving back in December.
“The increase stems from $5 being added to price of a barrel of oil,” said RAC fuel spokesperson Simon Williams, “although this has been cushioned by the pound strengthening a little against the dollar.
“These latest fuel prices unfortunately show the power of oil production cuts in getting the barrel price back up from the floor at $13.21, when the impact of international travel restrictions first hit last April, to the $55 mark now.”
Mr Williams said eyes will be on the Chancellor in his March 2021 Budget “as to whether to pile further misery on drivers by raising fuel duty at a time when pump prices are on this rise and many household incomes are being squeezed as a result of the pandemic”.
ALSO READ:
