‘Storm clouds are gathering’ with petrol and diesel prices to rise

“Storm clouds are gathering”, Royal Automobile Club (RAC) warned Britons saying fuel prices are starting to creep up again although petrol and diesel car owners are starting to see slight benefits from retailers.

Simon Williams, RAC fuel spokesperson, said recently that oil is being traded at the highest price for seven years and wholesale fuel costs are once again increasing.

He said this will “undoubtedly lead to retailers putting up forecourt prices.”

Speaking about changing prices and the effect that could have on drivers at a time when other household bills are spiking, Williams commented that at long last, retailers appear to have heard “our clarion calls for drivers to be charged a fairer price at the pumps”.

“On average, retailers are now making a more normal profit for each litre of fuel they sell than they did in December which makes today’s pump prices – although up slightly in December – more justified.

“Storm clouds are gathering, however,” Williams said.

“With oil now having traded above $90 (£66) for a week – the highest price for more than seven years, wholesale fuel costs are once again increasing, which will undoubtedly lead to retailers putting up forecourt prices.”

In January, RAC figures show that the average margin (profit) made by retailers on a litre of petrol stood at 11.4p, down from 16.4p in December.

While this is still significantly higher than the long-term average of around 6p, the RAC says it’s a step in the right direction in delivering better value for drivers when they fill up.

Meanwhile, proposals for a “pump watch monitor” to ensure motorists pay fair prices for fuel are to be examined by the Transport Secretary.

Grant Shapps said he will “pay close attention” to the idea put forward by his Conservative colleague, Robert Halfon.

Such a regulator would examine forecourt prices to see how they match up against rises and falls in crude oil price.