That rise is equivalent to a 10% hike since June, claims the PRA. Should you fill up?
Crude oil bounceAnother fuel price dip looks unlikely. The Middle East tension is seeing more commodity price speculation, coupled to a more volatile sterling exchange rate. The Goldman Sachs Group forecasts Brent crude prices may rise to $115 a barrel in the "very near term".
UK petrol prices - the average price of petrol in the UK is currently £1.37 a litre - haven't seen the full impact of this crude oil rise due to the unexpected revaluation of pound sterling from $1.48 to $1.56 says the PRA. "We calculate at current wholesale prices that this will add a further 5pence per litre at the pump before the end of September."
Think, then, £1.42 a litre or thereabouts - a high last seen at the start of spring. The latest fuel report from the AA claims prices have risen by 3p a litre on average since June. The average cost of diesel has risen from 140.24p a litre in mid July to 141.87p says the AA.
London still cheapest"This dashes," says the motoring organisation, "hopes of a return to the 11-week period earlier this year (24 April – 10 July) when diesel cost less than the 140p-a-litre average at the start of the year. Diesel now costs nearly 1.5p more than a year ago (140.45p)."
London recently reinforced its position as the area of the UK with cheapest average price for petrol at 136.9p a litre says the AA, 1.5p lower than Northern Ireland (138.4p) which is the most expensive region.
"Scotland, averaging 142.7p a litre," it says, "pays the most for diesel while the East Midlands shares the cheapest slot with Yorkshire and Humberside, both averaging 141.4p."