Record fuel prices set to rise even further

The prices of both petrol and diesel have skyrocketed, meaning it now costs over £10 more on average to fill up than it did this time last year.

But unfortunately for motorists, the bad news doesn’t stop there. Despite being at their highest since 2014, fuel prices look set to rise even further.

• What van should I buy? Best business vehicles rated
• How to keep tools safe in a van: top van security products and tips
• This MOT mistake could land you a £2,500 fine - even if your MOT is in date
• Is business insurance a legal requirement?

Why has the cost of fuel risen?

Fuel prices have risen because of a similar rise in the cost of crude oil. A spokesperson from the AA said: “The industry’s rule of thumb is that a \$2 change in the price of oil, at a constant exchange rate, causes a 1p change at the pump.”

At the start of this month, crude oil hit $72 a barrel, up from $61 in March. It's the highest it’s been since late 2014.

How much does fuel cost now?

In the first week of June, petrol prices were at 129.2p a litre, and diesel at 132.4p a litre, both up 0.5p from the end of May.

This is a rise of 14.7p and 17p respectively from this time last year. This means it now costs petrol car and van drivers an extra £9.55 on average for a full tank, and £11.05 more for those whose vehicles run on diesel.

Where does fuel cost the most in the UK?

It’s not surprising to hear that the cheapest fuel prices are to be found in the north. At the time of writing, you can get a full tank of petrol for £3.77 less in Liverpool than in West London, and Bradford drivers can expect to fill up for £3.58 less than those in the capital.

Scotland boasts some of the most and least expensive fuel costs, with Edinburgh the third cheapest in the UK for both petrol and diesel. Lerwick and the Outer Hebrides top both lists for most expensive.

UK Petrol prices

UK Diesel prices

How much will the cost of fuel rise by in future?

As well as the price of crude oil, there are a number of other factors that could affect how much you pay at the pump. The pound is not performing well against other currencies at present – it's at a four month low against the dollar, which is exacerbating the problem.

Industry experts are warning the price of petrol could rise by a few more pence a litre in the near future. So, if you rely on your vehicle for your business, it’s worth taking a look over your finances to check you can cope with the rising cost of fuel.