Today the AA have revealed that fuel prices have increased by 5p a litre in just one month, highlighting that predictions of an increase were correct.
Fuel prices were expected to increase by 4p per litre but latest figures have revealed that the increase was slightly higher than experts first thought.
Average UK petrol prices currently stand at 137.08p per litre which increased from 132.01p per litre in the second week of January. It will now cost motorists an extra £2.50 to fill up a 50-litre vehicle and a family that owns two vehicles could be paying an extra £10.62 a month compared to the beginning of the year. Diesel prices have also increased from 140p per litre to 143.96p per litre.
Last year motorists were faced with a 5p hike with many motorists cutting back on their journeys to save fuel, it is expected that this could happen again over the next few weeks.
AA president Edmund King said: “A weaker pound has probably contributed around 2p a litre to the increase, but the rest is pure refiner and speculator activity, according to market reports.
“Wholesale petrol increased by more than 1p yesterday following reports that US petrol supplies had fallen back.
“Since the start of the year, stock market players have been falling over themselves to predict oil prices rising to up to 130 dollars a barrel, based on speculation of higher Chinese demand. However, yesterday, the International Energy Agency lowered its estimate of global oil demand.
“The previous two petrol price surges ended with wholesale values falling off a cliff as refiners revved up production to maximise earnings and glut the market - while drivers cut back. We expect the same, but the damage will have been done to family budgets, consumer spending and the Government's tax-take.”
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By Amanda Bainbridge