Petrol prices increase for sixth consecutive month with ‘no end in sight’ for cost rises

Petrol prices increase for sixth consecutive month with ‘no end in sight’ for cost rises

05/06/2021

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Unleaded fuel increased by 0.89 pence at the end of April with prices rising to an average of 127.19p per litre. The cost is the highest price since January 2020 just weeks before costs started to fall as a result of the first lockdown.

However, the RAC has warned even higher pump prices could be set to hit drivers in May.

This is because the average cost of oil has risen by almost $5 to $66.93 during April meaning wholesale petrol and diesel prices are now also on the rise.

RAC fuel spokesman Simon Williams said further oil prices will “spell more bad news for drivers” when they go to fill up their vehicles.

Mr Williams said the increased costs were down partly down to the easing of lockdown as more vehicle owners were beginning to fill up their cars.

He said: “April marks six months of rising petrol prices and sadly there’s no end in sight as oil is getting perilously close to hitting $70 a barrel – something we haven’t seen for more than two years.

“If oil breaks this threshold, it will inevitably spell more bad news for drivers at the pumps.

“With lockdown restrictions easing, it’s very frustrating for drivers that they’re now having to contend with even higher fuel prices just at the point where many will be driving a lot more.

“But unfortunately, it’s the very fact people are driving more that’s causing petrol prices to go up as demand for oil – and in turn fuel – begins to outpace supply.

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The pump price increase means it now costs £69.95 to fill up a 55-litre family car with petrol.

Meanwhile, topping up a similarly sized car with diesel will now set road users back £71.35.

Mr Willaims said diesel drivers have genuine cause to feel let down” and wanted they should be paying “a lot less”.

They said the wholesale price of diesel is virtually the same as unleaded and has been since the beginning of March.

However, motorists still have to pay an average of 2.5p per litre more than those running petrol vehicles.

He added: “Progress in the global battle against the coronavirus will be critical in determining where fuel prices go from here.

“The success of domestic vaccination schemes could lead to greater demand for fuel and in turn rising prices due to global supply restrictions.

“Ongoing travel restrictions in other countries around the world may also prolong oil output restrictions and force fuel prices in the UK higher still.

“Currently, diesel car drivers have genuine cause to feel let down by fuel retailers as they should really be paying a lot less per litre to fill up as the wholesale price has been similar to that of petrol for most of April.

“Despite this, diesel is 2p a litre more expensive than petrol at 129.73p.”

The RAC has urged drivers to control their fuel spend by seeking out the cheapest providers.

They wanted this was usually the UK’s leading ‘big four’ supermarkets which charge fuel up to 4.5p per litre cheaper than the UK average.

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