Fuel prices continue rising

Fuel prices have reached a new record high this week, although there are hopes costs on the forecourt will begin to taper off.

RAC fuel spokesman Simon Williams said: “Just as more people took to their cars on the first day of the rail strikes the average price of petrol increased to 189.33p, taking a full tank over the £104 mark. Diesel also reached another new high at 197.11p putting it perilously close to the £2-a-litre milestone. A full fill-up of diesel for a 55-litre family car now costs on average £108.41.”

Despite the increased prices, there are hopes that the UK might be at a turning point.

Williams said: “With the oil price falling and wholesale costs down over the last week, pressure is mounting on the biggest retailers to turn the tide and put petrol pump prices into reverse. It now seems we’ve reached the current petrol peak, so we expect to see the big four supermarkets start to cut their prices. As they dominate UK fuel retailing this should lead to others reducing their prices too which will benefit drivers everywhere.”

That does not necessarily apply to diesel though.

Williams said: “The situation with diesel is different unfortunately as wholesale prices last week still put it on course to move closer towards an average of £2 a litre. If, however, oil continues to trade lower it could just prevent this from becoming a reality.”