Fuel prices are increasing for the UK as the AA release their fuel price report for July revealing that the cost of fuel could be back to what it was a few months ago.
Mid April saw fuel prices hit a peak of 142.49p a litre and then drop back down to 130.81p a litre at the beginning of this month. However as it stands the average cost of petrol is now 132.18p a litre and diesel is 137.26p a litre which highlights an increase for motorists.
The rise in costs is due to the increase in wholesale prices which ultimately leads to the prices at forecourts to increase. Surprisingly the fuel report revealed that London, which is usually the most expensive area for fuel, is now at 132.0p a litre for petrol and 137.2p a litre for diesel which is lower than the UK average. Petrol and diesel remains the cheapest around the Yorkshire region at 131.6p a litre and 136.6p a litre.
AA president Edmund King said: “It was inevitable that pump prices would eventually rise again but, as has been the case so many times in recent years, the questions remain: should it be happening now and what is driving them up? Is it the fundamentals of supply and demand or speculation in the oil and wholesale fuel markets? Current evidence seems to suggest the latter.
“Additionally, after the massive boost lower pump prices have given to family budgets and non-fuel consumer spending, it would be extremely disappointing if much of the benefit is lost to commodity speculation.”
Ian Donaldson, Managing Director of Autonet Insurance commented: “The report’s findings are not a surprise. Motorists were given a break of high fuel costs at the beginning of the month but now will see a slow increase in costs for fuel. Hopefully if wholesale prices come down over the next few weeks motorists will see the same.”
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By Amanda Bainbridge