September sees second consecutive month of pump price rises
- Average diesel prices now at highest point since August 2015
- Cost of filling a family size petrol car £5 more expensive than at the beginning of the year
- Rising oil price, fuelled by speculation about production cap, impacting retail prices
The cost of unleaded petrol and diesel crept up again in September, as a result of rising world oil prices putting upward pressure on the wholesale cost of both fuels, new data from RAC Fuel Watch shows.*
The average cost of a litre of petrol ended the month at 112.07p, up 0.48p on the average price at the start of September and just short of the 2016 high price of 112.33p. Diesel meanwhile averaged 113.34p per litre at the end of September, the highest average price since August 2015, and up 0.42p on the price at the beginning of the month. Supermarket prices both rose faster than average prices, with unleaded up 1.1p and diesel up 0.71p
The price of a barrel of oil, the biggest variable affecting UK fuel prices, went up 8%, or $3.45, through September finishing the month at $48.35 a barrel and a little way off the 2016 high price of $50.73 that occurred in early June.
The price rises mean that it now costs on average £61.63 to fill up an average-sized 55-litre petrol family hatchback, which is just over £5 more per fill-up than at the start of the year. To fill an equivalent diesel vehicle costs £62.34, around £4 more than it did in January. For a light commercial diesel vehicle with an 80-litre tank, it now costs £90.67 to fill from empty, up £5.88 since the start of the year.
RAC fuel spokesman Simon Williams said: “While there have been no shocks at the pumps lately, recent reports that OPEC – the organisation responsible for producing 40% of the world’s oil – has agreed there is to be a cut in oil production is having the effect of nudging oil prices up closer to the $50 a barrel mark.
“A higher oil price, combined with a weakening pound, is forcing up wholesale fuel prices: the wholesale price of diesel is now nearly 9p higher than it was at the start of August, and petrol 7.4p higher. The effect of this to date has been gradually rising pump prices.
“While we don’t envisage an immediate hike in prices in October, a lot depends on how markets react to the recent news of the first production cut by OPEC nations since 2008, which marks a major move away from the organisation’s long-term over-supply strategy. The announcement has already caused oil prices to jump a little, but until more specific details are available it is difficult to predict what the longer term outlook on pump prices, and therefore impact on motorists, will be.
“The new chancellor’s first Autumn Statement also looms next month, and the RAC hopes that he sees sense in committing to not increase fuel duty for the remainder of the Parliament – certainly compared to his predecessor’s track record on fuel duty, the new chancellor has a lot to live up to.”
Regional fuel price variation
The South East of England is currently the most expensive place to buy petrol in the UK, with average prices there standing at 112.62p per litre. East Anglia is selling the priciest diesel, at an average of 113.96p per litre. This region also recorded the biggest price rises through September, with petrol up 0.84p per litre and diesel up 0.61p per litre.
Northern Ireland witnessed the most modest increase in diesel prices, up just 0.12p to 112.03p per litre, and was the only part of the UK to see average petrol prices fall – by a marginal 0.02p to 110.76p per litre.
Regional average unleaded pump prices
Petrol – pence per litre
1/9/16
29/9/16
Change
East Anglia
111.67
112.51
0.84
Wales
110.95
111.61
0.66
South East
111.98
112.62
0.64
Scotland
111.11
111.74
0.63
North
110.99
111.48
0.49
West Midlands
111.84
112.30
0.46
East Midlands
111.60
112.01
0.41
South West
111.76
112.04
0.28
Yorkshire And Humber
111.26
111.42
0.16
North West
111.54
111.69
0.15
Northern Ireland
110.78
110.76
-0.02
Regional average diesel pump prices
Diesel – pence per litre
1/9/16
29/9/16
Change
East Anglia
113.35
113.96
+0.61
East Midlands
112.81
113.24
+0.43
North
112.57
112.85
+0.28
North West
112.60
112.94
+0.34
Northern Ireland
111.91
112.03
+0.12
Scotland
112.92
113.40
+0.48
South East
113.30
113.86
+0.56
South West
113.22
113.54
+0.32
Wales
112.57
112.87
+0.30
West Midlands
112.96
113.39
+0.43
Yorkshire And Humber
112.50
112.78
+0.28
Motorists can keep abreast of the latest fuel prices by visiting: rac.co.uk/fuelwatch or following #racfuelwatch on Twitter.
