Average fuel prices hit £1.50 a litre - RAC analysis and statement

With RAC data analysis showing the average cost of a litre of petrol has now passed £1.50 for the first time since last November, please see data and a full statement below. More analysis is available at RAC Fuel Watch: https://www.rac.co.uk/drive/advice/fuel-watch/

RAC fuel spokesman Simon Williams said: “Drivers are now really starting to feel pain at the pumps, with a litre of unleaded already up by more than 3p a litre since the start of the month and 9p since the start of the year – adding £1.65 and £5 to the cost of filling a typical family car. There are two reasons for this – the rise in the cost of oil and a weakening pound, which makes it more expensive when retailers come to buy new fuel supply. 

“The big question is what happens now. While the Middle East tensions saw oil hit the $90 a barrel mark, prices have since eased a little which is starting to translate into lower wholesale prices for UK retailers. In theory at least, this should mean prices at the pumps don't rise much further, if at all – but so much depends on the margin these same retailers decide to take. Right now, it's drivers of diesel vehicles who have the right to feel aggrieved as the average margin on a litre of diesel is 14p which is well up on the long-term average of 8p. Higher margins always mean higher prices for drivers.”