Middle East tension drives up UK fuel prices
Fuel prices have risen by 2p a litre after three months of declining prices, according to analysis from RAC Fuel Watch.
It found that unleaded now costs 134.17p a litre on average, up 2p since 1 June, while the price of diesel went up by nearly 2.8p a litre, from 138.39p to 141.21p at the end.
The primary cause of rising prices at the pumps was the rising cost of a barrel of oil following escalating tensions between Israel and Iran, with fears Iran might block oil exports.
RAC fuel spokesperson Simon Williams said: “The arrival of summer has brought some wholly unwelcome increases to pump prices, with retailers wasting no time in putting them up following increased tensions in the Middle East. Unleaded and diesel are now both at their highest levels since late April, although we see no reason for further increases as wholesale prices have come back down again.”
Telling month
Williams continued: “July will be a telling month – will retailers halt further price rises, or even cut them if wholesale costs continue to slide? Or will drivers be stuck having to pay an elevated amount for the foreseeable future?
“This is particularly topical given it was only two days ago that the Competition and Markets Authority noted how weak competition within the fuel retailing market is.
“Given fuel represents a substantial chunk of most households’ monthly outgoings, it remains the case that drivers need to be guaranteed a fair deal every time they fill up. The creation of a government-backed Fuel Finder scheme by the end of this year should make it easier to find the cheapest forecourts.”
