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Diesel prices rise by more than 10p per litre in a month

Date: Thursday, November 3, 2022   |   Author: Sean Keywood

According to the RAC, the price hikes began at the start of the month, when oil producer group OPEC+ agreed to cut production by two million barrels a day, leading to the barrel price going up by 7%.

This combined with the weaker pound made wholesale petrol and diesel – which is traded in dollars – more expensive, although the value of the pound against the dollar did increase during the month.

RAC fuel spokesman Simon Williams said: “After three months of falling pump prices October was a severe shock to the system for drivers with the unwelcome return of some scary numbers on forecourt totems. Those with diesel vehicles suffered most with 10p being added to the cost of a litre in what was the third worst monthly increase on record, but petrol car drivers also saw a 4p-a-litre increase across the country.

“Oil producer group OPEC+’s decision to cut supply by 2m barrels a day has cost drivers dear. Oil came perilously close to the $100 mark – something we haven’t seen since late August. Prior to that the barrel price was well above $100 from Russia’s invasion of Ukraine at the end of February until mid-July, reaching a high of $138 in early March, which caused pump prices of both petrol and diesel to reach new peaks in late June and early July.

“The fear now, particularly for diesel drivers, is whether the average price of a litre is heading back to that record of 199.09p which made a full tank cost more than £109. Looking at the wholesale market we strongly hope the price should stabilise. And those with petrol cars should actually see forecourt prices start to go slightly the other way as the wholesale cost of unleaded appears to have peaked – at least for the time being – in mid-October.”