Petrol prices are rising again as the average jumps to 145p-a-litre
Petrol prices are rising again as the average jumps to 145p-a-litre
- An AA report shows falling gasoline prices have reversed, rising to May levels
- It marks the end of weeks of declining pump prices for motorists
- HMRC confirmed last week that fuel consumption is back to pre-Covid levels
A summer of falling gasoline prices has come to an end, according to a new report, as unleaded gasoline has risen back to May levels.
Unleaded was up again on Monday to 145p-a-litre, last seen almost three months ago, while diesel has also risen to a UK average of 145.84p, according to the AA.
It comes as a huge blow to families starting their summer vacation and comes in the wake of fuel consumption returning to pre-pandemic levels this month.
The average pump price of petrol in the UK has slipped back to 145p-litre for the first time since May 11, while diesel prices have returned to the level of 145.84p-litre last seen in June, the AA EV shows Batch Report
After weeks of falling pump prices, petrol hit a low of 143.04 pence on June 7 and diesel fell to 144.31 pence on July 18 – shortly after an investigation into fuel retailing by the Competition and Markets Authority.
The increase is mainly due to the increase in oil prices, which have increased by more than $5 per barrel, from less than $80 to $85 per barrel.
These figures were soon reflected in wholesale gasoline and diesel price hikes in the latest example of “rocket and feather” pricing – where retailers are quick to pass on increases but are slow to lower prices when their costs fall.
The timing couldn’t be much worse for families going on summer vacation during the school holidays.
The news also comes as traffic levels appear to be returning to pre-Covid levels.
HMRC released figures on Friday showing petrol and diesel consumption from April to June were at pre-pandemic levels.
Luke Bosdet, the spokesman for the AA, said: ‘A jump in petrol and diesel pump prices will push up the cost of driving holidays this summer.
‘However, compared to pump averages of 182.11 pa-litres for petrol and 192.06p for diesel at this time last year, travel costs for staycations are much lower and holidaymakers pay.
Where higher fuel costs are likely to hurt the most is potential spend in UK tourist destinations being re-swapped to service stations on holiday routes.
‘Bad weather is harming the tourist industry and rising petrol and diesel prices are not helping.’
The increase in gasoline and diesel is mainly due to the increase in oil prices, which have increased by more than $5 per barrel, from less than $80 to $85 per barrel
Unlike rising fuel prices, the cost of charging an electric vehicle continues to fall as energy prices fall.
Excluding cheaper home charging, fast-charging and high-speed charging costs fell 19 percent in June, while off-peak charges fell 15 percent, the analysis found.
In May, the CMA’s long-running investigation into the fuel retail segment concluded that retailers, particularly supermarkets, had raised prices more than necessary to increase profit margins.
It said: ‘The recent high fuel prices paid by drivers cannot be attributed solely to factors beyond the control of retailers, such as the war in Ukraine, which has led to a rise in wholesale prices.’
Instead, the regulator found evidence suggesting “some weakening of competition” had driven up prices at the pump.
RAC Fuel Watch data also showed that the four major supermarkets, which dominate fuel retailing, have been slow to pass on wholesale cost cuts this year, particularly for diesel – a point RAC made clear in its submission to the CMA- research.
As a result, the RAC has warned motorists not to automatically assume that the largest retailers are the cheapest place to buy fuel, as their fuel station prices can vary significantly from supermarket to supermarket and area to area, sometimes even within just a few kilometers.