AA: Petrol Costs Likely To Rise Further

Written By Unknown on Selasa, 03 Maret 2015 | 23.17

The AA has warned unleaded petrol prices are likely to rise further as costs hit an average 110p-per-litre again.

The motoring organisation reported that the product cost of unleaded had risen just 5p in the space of a month following the six-year pump price low of 106.39p at the start of February.

It said the average stood at 110.12p-per-litre, suggesting there was further scope for retailers to increase their prices.

Diesel, which fell to a low of 113.42p-per-litre at the start of February, now averaged 116.85p, the AA said.

It calculated that the 3.7p rise in pump costs added £7.40 to the monthly petrol costs of a two-car family.

The rise in pump prices follows a $15 (£9.70) hike in the cost of a barrel of oil between the middle of January and the end of February.

Brent crude lost 60% of its value at the height of the price fall between June 2014 and January this year - blamed on a glut in the market which remains.

It is currently trading above $61 a barrel in London as traders become more positive on world economic recovery and higher demand.

The AA said market speculators were driving prices higher and UK motorists had now learned to insulate themselves from the effects of higher pump costs by cutting back on car use.

Edmund King, the AA's president, said: "Beyond winter, drivers fear another spike in oil and pump prices.

"Once again, from oil storage tank through to the forecourt, profit from road fuel is being pumped up – despite International Energy Agency figures indicating abundant global oil supplies at present.

"Just when drivers and businesses hoped that there might be some stability in petrol and diesel prices, commodity market greed has pushed up costs again and many petrol stations have wasted little time in passing them on."


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