Fuel prices rise for second consecutive month
The period of low fuel prices has definitely come to an end. For the second month in a row, prices have risen at the pumps, thanks to a 25% increase in the cost of a barrel of oil.
Both petrol and diesel have gone up by an average of 2p per litre, with petrol rising from 108.27p (previously 105.64p) and diesel costing 108p (previously 105.41p). The wholesale cost of petrol rose 2.5p, while diesel went up 4.6p per litre.
A tank of diesel cost £1.42 extra in April compared to March, while in March prices rose £2 compared to February. As a result the cost has risen by £3.42 in two months.
At supermarkets, the average price rose by 3p a litre for both petrol and diesel. Supermarkets now sell petrol for an average of 105.85p (previously 102.68p) and diesel for 105.76p (previously 102.58p).
RAC fuel spokesman Simon Williams said: "The physical or spot price of Brent crude oil saw its largest one-month gain in price in the past 12 months. While this has had an adverse impact on the price motorists are paying for petrol and diesel on the forecourt, the world is still producing too much oil which means prices should not rise much further, and may stabilise or even start to fall again."
Williams explained that prices had been kept low by overproduction in OPEC countries, which was aimed at challenging the profitability of fracking industry in the US. However, supply disruptions in Iraq and Nigeria, coupled with maintenance issues in the United Arab Emirates and a drop in US production, have pushed prices back up.