You may have noticed an increase in fuel prices over the last few weeks, resulting in an increase of over £3 for a full family tank.
We reported in April that fuel prices were going to increase up to a potential 5.5p per litre in the weeks following our article. In fact, both petrol and diesel increased by an average of almost 6p per litre in May, which, according to data from RAC Fuel Watch, was the largest monthly rise in 18 years. The data also showed that the average prices have gone up every day since 22nd April, which is the longest sustained price increase since March 2015.
In terms of petrol prices, the North West experienced the biggest price rise with an average rise of 5.98p per litre. For diesel, Wales saw the highest increase with prices going up by a huge 6.07p per litre on average. The smallest increase was Northern Ireland with an increase of just 5.07p per litre on petrol.
So, what has caused this? The price for oil itself has increased, and this is mainly due to the Middle East crisis as well as a 2% drop in the value of the pound against the dollar. In April, it rose to a three and a half year high at almost $72 a barrel and has continued to rise to just over £76 per barrel in May.
The cost per barrel did decrease slightly, however, at the end of May, which we’re hoping will result in a small decrease in fuel costs on the forecourts.