The last seven days has seen the average price of petrol jump 1.22% to 113.72p a litre, and diesel 1.39% to 116p a litre – the biggest weekly increase in fuel prices since January 2011.
RAC fuel spokesman Simon Williams said the price rise was due to a “perfect storm” of factors, which we covered off in our last blog following predictions of a 5p price increase. He explained: “The plummeting pound, combined with a rising oil price as a result of indications that Opec and possibly Russia will agree a cut in oil production in November, are driving wholesale prices up. However, it is the flash crash of the pound that took place on October 7 which has been the major factor in the sheer speed of the average price increases as fuel is traded in US dollars. This has led to the average fuel price rising 3p per litre in three weeks”. Worryingly, Mr Williams described the outlook for motorists as “ominous”, as uncertainty seems to plague prices further.
The Treasury are due to release its Autumn Statement next month, and in light of the recent increases in fuel price, the RAC has urged them to “think again” if raising fuel duty was a priority, adding: “The present situation underlines just how rapidly things can change”.
According to the AA, the cost of filling a typical car petrol tank has risen by £6.67 in the past seven months. The organisation’s president, Edmund King, said: “This is a hammer blow not only to family and business finances but a severe shock when people consider that supermarket fuel was available at £1 a litre earlier this year”.
Of course, one easy way to save on your petrol bill is to offer out your spare seats to potential car sharers who need a ride the same way you’re travelling. You can work out how much you’d save on our Savings Calculator, and list your spare seats now to get started!
Author Lex Barber