…Researched and contributed by Henry George for TDPel Media
New analysis reveals that the near-continuous fall in petrol prices since November 2022 has come to a halt due to an increase in the cost of oil.
The AA reports that the average price of a litre of petrol at UK forecourts was 146.9p on Wednesday, which is up by 0.5p since the end of March.
Reason for the Halt: OPEC Production Cut Leads to Increase in Oil Prices
This increase in petrol prices comes as the typical cost of a barrel of oil has risen by more than 10 US dollars since mid-March, after the oil producer group Opec cut production.
It’s worth noting that the increase in the price of petrol followed a downward trend that lasted 22 weeks, starting on October 30, when the average was 166.5p per litre.
AA Report: UK Drivers Have Dodged a Significant Pump Price Rise
AA fuel price spokesman Luke Bosdet said UK drivers have “so far dodged a significant pump price rise”.
However, he claimed that “the pump-price postcode lottery remains a scourge,” with significant price differences between urban areas only a few miles apart.
Example of Price Discrepancy: Norfolk
The AA gave the example of Norfolk, where supermarkets were selling a litre of petrol for 146.9p in Dereham this week.
However, 13 miles away in Fakenham, the cost was 158.9p, highlighting the price differences in different regions.
Diesel Prices Falling but Drivers of Diesel Vehicles Being Ripped Off
According to Mr Bosdet, drivers of diesel vehicles “are clearly being ripped off” despite prices continuing to fall.
Diesel prices reached 160.7p per litre on Wednesday, which is a decline of around 4.5p from a month ago.
It’s interesting to note that the gap between the average pump prices of petrol and diesel has shrunk from 24.7p in November to 13.8p this week.
Diesel Supplied to Retailers Cheaper Than Petrol for a Month
Despite this, Mr Bosdet believes that “this doesn’t excuse the fact that diesel supplied to the retailers has been cheaper than petrol for a month”.
In conclusion, the halt in the continuous fall of petrol prices due to the rise in the cost of oil may not be significant for UK drivers so far.
However, price discrepancies between different regions and concerns over diesel prices continue to be issues that need to be addressed.