Petrol Prices Soar to Highest in Eight Years
July has delivered drivers the biggest surge in unleaded petrol prices since January. The average cost per litre hit 135.13p – levels last seen in September 2013. That’s a jump from 131.76p at the start of July. Diesel hasn’t been left behind either, rising to 137.06p from 134.36p.
Fill-Ups Hit Record Highs for Summer
It’s official: last month was the priciest July ever for petrol since 2013, and the most expensive for diesel since 2014. Filling a 55-litre petrol tank now costs drivers £3.08 more than in early June and a whopping £11.47 more than the same time last year. Diesel drivers aren’t spared either, paying nearly £3 extra compared to June and over £10 more than in July 2020.
Why Prices Are Climbing
With global economies shaking off the pandemic slump, oil demand is surging. Vaccination programmes and eased restrictions have boosted travel and business activities worldwide, driving up fuel consumption. Although the oil price barely changed across July, it brushed close to $80 a barrel early in the month, tightening supply and pushing wholesale fuel costs up.
Save a Penny or Two at Supermarkets
Budget-savvy drivers should head to supermarkets for cheaper fuel. Petrol there is around 3p cheaper per litre than the average (132.34p vs 135.13p) and a massive 16p less than motorway service stations (132.34p vs 148.78p).
RAC fuel spokesman Simon Williams said:
“Prices really are only going one way at the moment – and that’s not the way drivers want to see them going. With a second summer staycation in full swing, it’s proving to be a particularly costly one for many families who are using their cars to holiday here in the UK.
With so many people depending on their vehicles, there’s really nothing drivers can do to escape the high prices, and our best advice is for them to drive as economically as possible in order to try to make their money go further.
Right now it’s hard to see what it will take for prices to start falling again. While we’re not past the pandemic by any means, demand for oil is likely to continue to increase as economic activity picks up again, and this is likely to have the effect of pushing up wholesale fuel prices, costs which retailers are bound to pass on at the pumps.
Unless major oil-producing nations decide on a new strategy to increase output, we could very well see forecourt prices going even higher towards the end of the summer.
If there is any good news at all, it is that prices would need to rise significantly further – by a further 3p – to reach the highest prices we saw in 2013. But that’s no comfort for the millions of drivers who are faced with paying so much more for fuel than they have done in many years.
Drivers planning to change their vehicles in the coming months would do well to consider an electric model, where running costs are so much lower. Even upfront costs have now become much more affordable, and with the RAC’s new EV lease scheme motorists can currently get into a brand new zero-emission 40kW Nissan Leaf for just £227.99 a month, after paying a small initial rental payment.”
Regional Price Rises: Who’s Paying the Most?
Unleaded price jumps (pence per litre):
- East Midlands: +3.71p (from 131.08p to 134.79p)
- West Midlands: +3.70p (131.52p to 135.22p)
- North West: +3.52p (131.24p to 134.76p)
- Yorkshire & The Humber: +3.49p (130.66p to 134.15p)
- East: +3.45p (132.26p to 135.71p)
- South West: +3.38p (132.26p to 135.64p)
- North East: +3.35p (130.53p to 133.88p)
- Scotland: +3.25p (131.51p to 134.76p)
- South East: +3.01p (132.84p to 135.85p)
- Wales: +2.92p (131.27p to 134.19p)
- Northern Ireland: +2.85p (128.55p to 131.40p)
- London: +2.73p (133.13p to 135.86p)
Diesel price increases (pence per litre):
- West Midlands: +3.07p (134.39p to 137.46p)
- East: +3.04p (134.96p to 138.00p)
- Wales: +2.92p (133.48p to 136.40p)
- South West: +2.87p (134.77p to 137.64p)
- East Midlands: +2.83p (134.14p to 136.97p)
- Scotland: +2.80p (134.24p to 137.04p)
- Yorkshire & The Humber: +2.78p (133.83p to 136.61p)
- South East: +2.67p (135.53p to 138.20p)
- North West: +2.66p (133.98p to 136.64p)
- North East: +2.65p (133.17p to 135.82p)
- London: +2.56p (135.33p to 137.89p)
- Northern Ireland: +2.21p (130.29p to 132.50p)
Drivers are feeling the pinch everywhere, with the biggest price hikes seen across the Midlands and northern regions. The upward trend looks set to continue unless producers pump more oil into the market.
