Diesel and petrol prices at UK filling stations went up in January, the RAC has said.

The motoring organisation reported that the average cost of a litre of diesel was up by 3.38p to 128.43p, the second monthly increase in a row.

The average price of a litre of petrol rose by 3.5p to 120p – the third consecutive monthly increase.

Despite the increases, both fuels are still around 7p per litre cheaper than they were a year ago.

RAC spokesman Simon Williams said current petrol prices were back at a level last seen at the start of the first Covid-19 lockdown last March.

He said: “The increase stems from $5 being added to price of a barrel of oil although this has been cushioned by the pound strengthening a little against the dollar. One thing’s for sure prices are nowhere near the lows we saw in late May when petrol was just under 106p a litre and diesel was 111p.

“These latest fuel prices unfortunately show the power of oil production cuts in getting the barrel price back up from the floor at $13.21, when the impact of international travel restrictions first hit last April, to the $55 mark now.

“Eyes will now be on the Chancellor who will face a difficult decision at his Budget next month as to whether to pile further misery on drivers by raising fuel duty at a time when pump prices are on this rise and many household incomes are being squeezed as a result of the pandemic.”