Petrol prices back on the rise as average jumps to 145p-a-litre

A summer of falling petrol prices has come to an end as unleaded has jumped back to levels last seen in May, according to a new report.

Unleaded on Monday was back up to 145p-a-litre, which was 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 embarking on their summer holidays and comes in the wake of fuel consumption returning to pre-pandemic levels this month.

Petrol’s average pump price across the UK has gone back to 145p-a-litre for the first since 11 May whilst diesel prices have returned to 145.84p-a-litre levels last seen in June, the AA EV Charge Report shows

Following weeks of declining pump prices, petrol bottomed out at 143.04p on 7 June and diesel fell to 144.31p on 18 July – shortly after an investigation into the fuel retail sector by the Competition and Markets Authority. 

The rise is primarily as a result of the hike in oil prices which jumped by more than $5 a barrel, from below $80 to $85 a barrel. 

These figures has been quickly been reflected in wholesale petrol and diesel cost increases in the latest example of ‘rocket and feather’ pricing – where retailers are quick to pass on increases but slow to cut prices when their costs fall.

The timing couldn’t be much worse for families embarking on summer trips 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 that over April to June period, petrol and diesel consumption was on par with pre-pandemic levels. 

Luke Bosdet, the AA’s spokesman, said: ‘A jump in petrol and diesel pump prices will add to the cost of motoring holidays this summer. 

‘However, compared to pump averages of 182.11p-a-litre for petrol and 192.06p for diesel this time last year, staycation road travel costs are way down and holidaymakers quids in.

‘Where higher road fuel costs probably hurt most is potential spending at UK tourist destinations once again being siphoned off at forecourts on holiday routes. 

‘Bad weather is hurting the tourism industry and rising petrol and diesel prices won’t help.’

The rise in petrol and diesel is primarily as a result of the hike in oil prices which jumped by more than $5 a barrel, from below $80 to $85 a barrel

In contrast to rising fuel prices, the cost to charge an electric vehicle continues to decline as energy prices soften. 

Away from cheaper home charging, peak fast and rapid charging costs fell by 19 per cent in June while off-peak charges were down 15 per cent, the analysis showed. 

Back in May, the CMA’s long-running investigation into the fuel retail segment concluded that retailers, particularly supermarkets, had hiked prices more than needed to boost profit margins.

It said: ‘Recent high fuel prices paid by drivers cannot be solely blamed on factors outside the control of the retailers, such as the war in Ukraine, which has caused an increase in wholesale prices.’

Instead, the regulator found evidence that suggests that ‘some weakening of competition’ had pushed up prices at the pump.

RAC Fuel Watch data also found the big four supermarkets, which dominate fuel retailing, were slow to pass on reductions in wholesale costs this year, particularly for diesel – a point RAC made clear in its submission to the CMA investigation.

As a result, the RAC has warned drivers not to automatically assume the biggest retailers are the cheapest place to buy fuel as their forecourt prices can vary significantly from supermarket to supermarket and from area to area, sometimes even within just a few miles.

This post first appeared on Dailymail.co.uk