The price of petrol has gone up more than 3p a litre in the last three weeks while diesel has increased by 4p, as world oil prices leap higher.
Unleaded fuel rose from 140p a litre on 29 January to 143.4p on 18 February, and diesel shot up from 148p to 152p in the same period – adding around £2 to filling up a family car.
The change in pump prices is being linked to a jump in the cost of oil, which has been trading above $80 a barrel for most of the last four weeks.
The RAC said its Fuel Watch data showed petrol had up until now been getting cheaper over the last three months, falling 17p, from 157p to below 140p in mid-January – the first time it had been below this mark since mid-October 2021.
The price of diesel also went down by 15p, from 163p in early October to just below 148p in late January, though it was cheaper for much of last summer.
RAC fuel spokesman Simon Williams said: “News that fuel prices have bottomed out and are now on the rise again is bad news for drivers, and possibly the economy and future inflation rates, too.
“While we’re not expecting prices to shoot up dramatically, it appears that oil is trading up, which in the absence of a stronger pound means wholesale fuel costs more for retailers to buy in. The result is higher prices at the pump and more expense for the everyday driver.
“The Red Sea attacks by Houthi rebels, which are forcing tankers to avoid the Suez Canal and instead go round South Africa’s Cape of Good Hope, are clearly playing their part, but so have global refinery maintenance closures, the start of America’s driving season, and UK retailers buying more fuel stocks ahead of the Budget to protect against a possible fuel duty hike by the Chancellor.”
He said that despite these factors, “we ought not to see forecourt prices go up too much more from where they are today, but a lot depends on how much margin the biggest retailers decide to take.
“Positively for drivers, supermarket margins are lower than they were in January, but they are still significantly higher than they were prior to the pandemic and Russia’s invasion of Ukraine.
“If a ‘new normal’ supermarket margin were to settle around 7p, drivers would get a fairer deal. Last year, RAC data shows they benefited from an average mark-up of 10p on every litre of fuel sold as opposed to just under 6p in 2019.”
Oil prices are set to remain volatile, analysts have warned. Last week, an International Energy Agency (IEA) report last week revised the 2024 oil demand growth forecast downward, to almost a million barrels a day less than producer group Opec’s outlook.
The IEA estimated global oil demand will grow by 1.22 million barrels per day (bpd) this year. Opec’s growth forecast is 2.25 million bpd.
US oil refiners are running at weak levels due to seasonal maintenance and unplanned stoppages, but warmer winter weather may prompt refiners to ramp up rates, analysts said.
