The cost of petrol is set to soar this month, with a litre rising to 125 pence.
This is according to City analysis, which suggests that the rising price of oil, combined with weaker sterling, will push the cost of filling a tank up 25 per cent higher than this time last year.
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The average price at the pump in December was 117.2 pence for petrol and 117.2 pence for diesel, as reported by Experian.
But during the month, sterling fell further against the dollar, the currency in which oil trades are denominated.
Meanwhile OPEC, the intergovernmental organisation of the world’s major oil exporters, agreed in November to cut production by 1.2 million barrels per day, which City watchers expect to push wholesale prices higher.
Supermarkets keep December prices low to ‘attract shoppers’
Speaking to the Daily Mail, Brian Madderson, chairman of the Petrol Retailers Association, said: “The wholesale cost of both types of fuel in December went up by more than the pump price and that’s because supermarkets – which account for half the petrol market – have been keeping prices down in the run-up to Christmas to attract shoppers.
“The supermarkets are likely to keep their prices down until early January, but after that average prices are set to go up pretty quickly. This is going to start to feed through to inflation and will reduce people’s spending power.”
Another blow to motorists
Back in late 2016, we told you how running your diesel vehicle is about to get a lot more expensive as a surge in fuel prices, coupled with the introduction of ‘clean air zones’, could end up making self-employed workers’ lives a misery if they regularly attract jobs in city centres.
Over 350 people voted in the poll on our article, with 93 per cent believing that the self-employed should either be exempt from the ‘clean air zones’ or have their fees subsidised. Do you agree?
Looking for self-employed insurance?
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