Fuel prices reach eight-year high, RAC says

4 August 2021, 21:11

Fuel prices are at their highest since 2013
Fuel prices are at their highest since 2013. Picture: Alamy

By Emma Soteriou

Petrol prices have reached an eight-year high after rising for nine months in a row, according to RAC figures.

On average, a litre of unleaded now costs £135.13, a price that has not been seen since September 2013.

Diesel also saw a rise on the previous month, with prices up from £134.36 per litre to £137.06. It is the most expensive July for diesel since 2014.

The jump in cost is due to an increased demand for oil, much higher than the current supply, according to the RAC.

The easing of Covid restrictions has led to people wanting to travel more as well, meaning prices are likely to continue to go up.

The RAC estimates that drivers currently pay £11.47 more for their petrol than they did during July 2020. Diesel drivers pay £10.46 more.

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Simon Williams, a spokesman for RAC fuel, 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 a new strategy to increase output, we could very well see forecourt prices going even higher towards the end of the summer."