Petrol prices could rise to £1.42 a litre

Get set for more fuel price pain. Tensions in Egypt, Syria and other areas of the Middle East look set to help push fuel prices higher. The Petrol Retailers' Association (PRA) claims fuel prices are on a 'knife edge' with the cost of Brent punching through the critical $110/barrel level last week.

That rise is equivalent to a 10% hike since June, claims the PRA. Should you fill up?

Crude oil bounce

Another 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.

The most expensive petrol in the world

The most expensive petrol in the world

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."

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