12 June 2019
Data from the RAC reveals petrol prices hit 130.57p in May while diesel increased to 135.54p in contrast to the end of January when a litre of unleaded cost an average of 119.54p and diesel was 128.64p.
As a result of the rises, petrol was only a penny away from its five-year high of 131.58p which was recorded on 15 October 2018. The last time unleaded was more expensive than this was 15 July 2014 (131.61p). Diesel hit 136.94p a litre on 30 October, prior to that it was last this high on 10 March 2014 (137.17p).
However, by the end of the month oil had fallen by 9% to $65, a price not seen since mid-March, perhaps signalling prices easing at the pumps.
The RAC fuel spokesman said: “After suffering a steady flow of daily fuel price increases because of rising wholesale costs we urge retailers to reflect this sudden drop in the price of oil by cutting their prices as soon as possible. Consequently, there is scope to cut the price of diesel by at least 6p a litre. In reality, however, the majority of retailers will no doubt refuse to do this and instead continue to use the saving from the lower diesel wholesale price to subsidise the ‘headline’ petrol price with a view to attracting more customers to their forecourts and stores.”
Whilst the fall in oil price appears to be positive news for UK motorists, “OPEC”, the Organization of the Petroleum Exporting Countries, will be meeting at the end of June to discuss production levels. They have been working together on limiting oil production since early 2017 and in fact increased curbs earlier this year. If they were to decide to go still further this would prop up oil prices and be bad news for UK motorists.
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