Fuel prices rise further, but supplies ‘Fuel’
There is no end in sight to rising fuel prices, but supplies are “stable,” according to an industry body.
The Petrol Retailers Association (PRA), which represents the majority of UK operators, told Sky News that the price rises that forecourts are facing rose sharply again last week and that supplies to the pumps will continue.
It pointed to data from S&P Global’s Platts division showing diesel continued to be impacted by wholesale increases, which rose by an average of $258 a tonne during the week.
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The petrol price increased by $2.
Upward pressure on diesel prices is high, as the country imports most of its use, while most petrol is refined domestically.
The Middle East war has increased global competition for diesel by exerting pressure on supply.
Gordon Balmer, executive director of the PRA, said, “There is no suggestion of a shortage. Supply is stable.”
But he added, “(Pump) prices will continue to rise” as retailers buy up their fuel stocks in the coming weeks.
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Data from RAC Motoring Group on Monday afternoon showed the average price of unleaded has risen more than 14p a litre to 147.19p since the end of February.
Diesel pump costs rose by 29p to 171.17p— the highest price since mid-January 2023.
The RAC predicted late last week that the average price of a litre of unleaded was likely to reach 150p and diesel possibly 180p by Easter.
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Mr Balmer thought averaging around those levels might be seen before then as fuel operators grapple with rising wholesale costs and cannot sell at a loss.
It is also likely that wholesale prices will be slower to reflect the decline in oil costs seen on Monday after Donald Trump expressed hope for an end to hostilities following positive talks with the Iranian side.
The government has indicated it is looking carefully at forecourt margins while exploring ways to help mitigate fresh energy-led price increases that are putting consumers and businesses at risk.
A barrel of Brent crude is currently up 50% this month. The natural gas figure is slightly less than 100%.
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Ministers are urging the government to alleviate the tax burden on fuel sales and energy bills for drivers and families.
On the fuel front, tax generally accounts for about half of the cost of filling up.
As things stand, the 5 paise per litre cut in fuel duty by the previous government will start ending from September.
Confirming his plans on Sunday night for a meeting of the government’s COBRA committee focused on the cost of living, a spokesman said, “As the Chancellor said in Parliament, the extent of the economic impact of the situation in the Middle East will depend on its severity and its duration.
“The Government will be responsive to an uncertain world and will always act responsibly in the national interest.
“The government is already working to prioritise vulnerable households and businesses, taking action on cost of living and inflation, and building on the stability the government has restored to the public finances.”
