Experts are warning that petrol and diesel prices are likely to climb in the near future as filling stations across the UK start to hike costs.
Through November and December last year, the price of Brent crude oil – one of the biggest determining factors in the price of petrol and diesel – remained steady between $71 (£58) and $75 (£61) per barrel.
Despite the optimism at the end of the year that prices would remain steady or continue to fall, drivers could see costs at filling stations rise again.
January has already seen a “significant shift” as Brent crude oil hit $81 (£66) per barrel earlier this week.
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Drivers could soon see fuel prices jump after Brent crude oil prices rose
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This has sent shockwaves throughout the oil industry, especially as the US dollar strengthens against the British pound, dropping from $1.25 (£1.02) to $1.22 (£1).
At present, a litre of petrol at the average filling station costs 137p, an increase of almost one penny compared to the start of the year.
More worryingly, wholesale prices of diesel have surged by nearly four pence per litre. Experts from PetrolPrices note that there is usually a delay between wholesale increases and pump prices, meaning prices are “likely” to increase further over the coming days.
PetrolPrices warned: “While some stations may temporarily absorb these cost increases, it’s likely that pump prices, especially for diesel, will rise over the next 7–10 days.”
Data suggests that four times as many filling stations have increased unleaded petrol prices than have decreased them since the start of January.
Similarly, a staggering seven times as many fuel stations have hiked diesel prices compared to those who lowered costs over the last two weeks.
PetrolPrices added: “The variation in pricing between stations has also increased. This is in part due to the differing times at which they adjust to rising wholesale costs. This is increasing the variability of pricing in local areas.”
Supermarkets have the added benefit of being able to set prices at more competitive levels, with drivers also able to make use of loyalty schemes and vouchers.
Of the “big four” supermarkets, Tesco has held diesel prices steadily. It is now the cheapest among major retailers, despite starting the year as the most expensive.
Asda forecourts have increased pump prices by an average of 0.6 pence per litre, making it the second most expensive supermarket for diesel.
Morrisons has retained its position as offering the cheapest prices for unleaded E10 petrol, although the price cap between supermarkets has “narrowed significantly”.
At the start of the year, Morrisons was half a penny cheaper per litre than Tesco on average, although this has since dropped to less than 0.2 pence.
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Tesco currently has the lowest average diesel prices across the UK
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While the price of fuel is concerning for many, Labour is looking to roll out the Fuel Finder tool to help motorists find the cheapest prices in their local area.
It is hoped that the tool will be rolled out before the end of the year, with Budget documents estimating that it could save motorists between one and six pence per litre.
