Diesel prices rise almost 20p per litre in 12 months

Latest data from RAC Fuel Watch suggests that diesel fuel is now almost 20p more expensive than it was at the end of May 2020.

 

With prices continuing to spike, diesel has suffered a 14.4p hike in the last six months alone, with petrol rising to be more than 22p a litre more expensive than this time last year. According to the RAC, this is the biggest year-on-year increase seen for the past 11 years.

At an astonishing 129.27 pence per litre (ppl), unleaded is now more expensive than it was at the start of 2020 prior to coronavirus pandemic – a price which had not been seen since August 2019.

Diesel, however, at 131.59ppl, has not surpassed the staggering 132p a litre it reached at the end of January 2020.

Crucially, the RAC claims that this now means that a full tank for a 55-litre family car will set drivers of petrol cars back £71.10 and diesel cars £72.37 – around £8 more than before the non-stop rises began in November.

This recently published data shows that unleaded went up by more than 2p a litre (2.24p) in May to 129.27ppl, while diesel also increased by a similar amount (1.95p) to 131.59ppl.

Simon Williams, RAC fuel spokesman comments; “we’ve now witnessed the biggest petrol price rise in any 12-month period since May 2010 when unleaded rocketed from 99p a year earlier to 121p.

“As always, the future of fuel prices is hard to predict more than a few weeks in advance and even more so now as the pandemic appears to have altered the dynamics of fuel retailing, with the supermarkets having an even greater stranglehold on the market.”

Now, purchasing fuel at a forecourt run by one of the four major supermarket chains will currently save drivers around 4p a litre with the average price of petrol standing at 124.83ppl and diesel 127.36ppl, as the RAC says these giants are now responsible for selling 60% of all the fuel in the UK.

However, filling up on the motorway will set drivers back 146.78ppl for petrol and 149.59ppl for diesel after 2p and 1.6p rises in May.

“Looking at the wholesale price of both fuels, in normal circumstances unleaded definitely shouldn’t be continuing to rise with the numbers actually pointing to the potential for a 2p reduction,” continued Williams. “And diesel is currently 4p too expensive which suggests retailers are using the saving in the wholesale price to help make up for lower fuel sales over the last year.”

Urging retailers not to take advantage of drivers, the RAC says they should “fairly reflect” what is happening with wholesale prices on the country’s forecourts.

“Drivers’ fuel price fate depends on what happens with global oil production and demand,” he added. “Oil producers had curbed supply due to lower demand but have been releasing more product as the travel recovery continues.”

This begs the question; when will this stabilise?