Fuel prices to rise by further 5p a litre this month - here's why

Tradesmen, small business owners and other motorists are set for further fuel pain this month, with prices set to increase by some five pence a litre.

This is according to the Petrol Retailers Association, which suggests that the cost of filling an average car tank will go up by a substantial £2.75.

The rise will follow an increase of nearly £6.50 over the course of the last seven months. According to PetrolPrices.com unleaded petrol now costs an average of 114 pence, while diesel sits at almost 116 pence.

What has caused the increase?

The recovering price of oil has pushed up the cost, but this effect has been compounded by the falling value of the pound, as oil is priced in dollars. Investors and commentators are predicting that the pound may fall further against the dollar.

Petrol Retailers Association chairman Brian Madderson said: “Motorists can expect increases of up to 4p or 5p per litre by the end of the month unless there are favourable corrections to the exchange rate and to global oil prices. This will also increase UK inflation rates.”

The Association is calling for the government to announce a cut in fuel duty in next month’s Autumn Statement.

Where is fuel most expensive?

According to the AA’s September fuel price report, the South East and East Anglia recorded the highest price for unleaded fuel. East Anglia also has the highest diesel price.

Meanwhile prices were lowest in Northern Ireland for both unleaded and diesel.

Should small businesses be given a fuel subsidy? Let us know below.

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