Price of petrol is set to soar past £1.50 a litre, RAC says 

The price of petrol is expected to roar past £1.50 a litre after a barrel of North Sea oil went over $100 for the first time since 2014, the RAC said yesterday.

On Wednesday, average forecourt prices hit new records – 148.60p for unleaded and 152.05p for diesel – as garages passed the increase to drivers. 

A Daily Mail investigation found even higher prices on the motorway. Leigh Delamere services on the M4 and Burtonwood services on the M62 were charging 167.9p for unleaded and 169.99p for diesel on Tuesday.

On Wednesday, average forecourt prices hit new records – 148.60p for unleaded and 152.05p for diesel – as garages passed the increase to drivers

The RAC’s fuel expert, Simon Williams, said: ‘With oil producers struggling to up supply sufficiently to meet rising demand, along with ongoing uncertainty with Russia and Ukraine causing concern on the oil trading market, drivers are unfortunately in for even greater pain at the pumps in the coming weeks.

‘The price of petrol has already gone up nearly 3.5p a litre since the end of last year, adding almost £2 to a full tank.’

He added: ‘Back in September 2014, petrol only cost 129p a litre, and diesel 133p, because the exchange rate was stronger at $1.6 to the pound which made wholesale fuel cheaper as it’s traded in dollars.

The price of petrol is expected to roar past £1.50 a litre after a barrel of North Sea oil went over $100 for the first time since 2014, the RAC said yesterday [File photo]

‘Now with sterling worth just $1.35 and a new requirement to blend additional costly bio content into petrol and diesel, both fuels are now far more expensive.

The AA’s fuel supremo, Luke Bosdet, said: ‘As Storm Eunice bears down on the UK and motorists take cover, oil at $100 would guarantee that vehicle owners would be buffeted by high pump prices long after – except there is no shelter from those.’

Prices look set to mushroom if Russia – the world’s third biggest oil producer – invades Ukraine, with any resulting Western sanctions potentially choking off supply and pushing up prices.

The global price of oil has also soared in recent weeks due to growing demand amid economics reopening as the pandemic subsides.

Diminishing competition between supermarket forecourts, traditionally much cheaper, has also been blamed for rising prices.

It has sparked fresh warnings about the cost of living, with household budgets already being squeezed by rising energy bills, inflation and, from April, the Government’s 1.25 percentage point national insurance hike.