Diesel rocketed 10p per litre in October – third biggest monthly increase ever

Drivers of diesel vehicles were stabbed in October with the third largest monthly increase in fuel prices ever.

The RAC said the average price of a liter of diesel at UK service stations rose by more than 10 pence, adding an extra £5 to the cost of filling a typical 55-litre family car at the end of October compared to the beginning. an increase from £92 to £105.

Diesel started the month at 180.4 pence per liter and ended at 190.5 pence, the auto group confirmed.

Petrol prices also rose, but to a lesser extent, rising 4p per liter from 162.7p in early October and closing at 166.4p.

The only two recorded months of major fuel price increases were earlier this year, with prices rising an average of 22 cents per liter in March and a further 16 cents in June.

A third record surge at the pumps points to the pressure being placed on motorists’ budgets in 2022, mainly caused by the Russian invasion of Ukraine and the resulting rise in oil costs.

The renewed rise in prices at the pump is likely to push further the inflation rate for October, which is already under pressure from the rise in the energy price ceiling to the new energy price guarantee level of £2,500. The most recent official CPI inflation figure for the UK was 10.1 percent in September, by the ONS.

Britons have seen pump prices fall somewhat over the past three months, but the recent decision by the oil cartel Opec+ to cut production by two million barrels per day has led to a return of rising wholesale prices.

The decision, supported mainly by Saudi Arabia and Russia, caused the price of a barrel to jump seven percent in October, from about $89 to nearly $95.

While that’s close to the peak of $138 a barrel in March, retailers have been raising prices quickly.

The price of diesel has risen faster than that of petrol, partly due to an increase in demand from continental Europe.

As Russia has reduced its gas supplies, some European countries have become more dependent on the fuel for heat and electricity generation.

As a result, the price differential between the two fuels increased to 24.1 p/litre at the end of October, after the month started at 17.7 pence.

Since 2003, the average difference between them is 5p-per-litre.

For drivers of average family cars, someone with a diesel model pays £104.78 to fill up compared to a petrol equivalent of £91.52 – more than a £13 premium.

The pound’s depreciation following the disastrous Truss-Kwarteng mini-Budget in September has also affected UK prices, with oil being traded in dollars.

Diesel prices have risen faster than petrol, partly due to an increase in demand from continental Europe

The price difference between a liter of diesel and petrol – which was usually around 5 pence – increased to a staggering 24.1 pence at the end of October

Commenting on the rise, RAC fuel spokesman Simon Williams described the October fuel price hike as a “serious shock to the system for drivers.”

He said it has led to the “unwelcome return of some creepy figures on totems in the forecourt.”

Mr Williams added: “The decision by the oil producer group Opec+ to cut supplies by two million barrels per day has cost drivers dearly.

The fear now, especially for diesel drivers, is whether the average price of a liter will fall back to that record 199.99 pence, which left a full tank of gas costing over £109.

“Looking at the wholesale market, we strongly hope that the price will stabilize.

“And those who drive petrol cars should actually see gas station prices moving a bit in the other direction, as the wholesale price of unleaded seems to have peaked – at least for now – in mid-October.”

The AA, which also tracks wholesale costs of both fuels, offered some hope to motorists last week, saying the price hike at the pumps “should level off soon.”

In the meantime, fuel experts advise drivers to refuel at supermarkets, which are likely to hold back some of the price hikes initially.

But eventually they will also be forced to raise their prices.

Luke Bosdet, the AA’s fuel price expert, says the news comes at the worst of times, with the clocks turned back last weekend and the colder and darker evenings set in.

Ultimately, this means drivers will use their car’s lights, wipers and heaters more, making their engine work harder and thus use more fuel.

“Getting one mile less from a gallon of fuel is equivalent to using more than an extra gallon per tank for a car that averages about 45 miles per gallon,” Bosdet said.

He also highlighted the massive impact that rising diesel prices are having on businesses, especially transportation and delivery companies, who will be forced to add surcharges to bills to insulate themselves from higher fuel costs, which will in turn be passed on to customers and fuel inflation. further.