The increase in the price of gasoline in August was the fifth largest in the last two decades, according to RAC
- Unleaded petrol consumption is now 152.52 pints, an increase of 6.68 pence in a month.
- Diesel hits 154.37 pence, up 8.01 pence in August, according to RAC
- It occurs when OPEC+ cut supply, causing wholesale prices to rise.
Petrol prices accelerated by almost 7 pence a liter in August, marking the fifth-highest monthly increase in 23 years, data shows.
Diesel also rose 8 pence per litre, the sixth biggest jump, according to RAC Fuel Watch.
The average price of unleaded petrol ended August at 152.25 pence, up 6.68 pence from 145.57 pence at the beginning of the month, adding almost £4 to the tank.
Meanwhile, diesel soared from 146.36 pence to 154.37 pence.
Pain at the pump: Fuel price has skyrocketed in the past month, RAC data shows
The increase in prices at the pumps is due to the dizzying increase in oil prices.
They have risen nearly $12 since early July to $86.86 a barrel as producer group OPEC+ – often labeled a “cartel” by experts – cut supply.
This, in turn, has led to an increase in the wholesale cost of fuel (the price that retailers pay), which has been passed on to drivers at service stations.
Simon Williams, RAC fuel spokesman, said: “August was a big shock for drivers as they had grown used to seeing prices much lower than the all-time highs of last summer.
“To see the cost of a tank rise to £4 or more in just a few weeks due to a pump price increase of 6 to 7 pence a liter is irritating, especially for those who drive a lot of miles or use an older, less expensive vehicle. fuel efficient car.’
The RAC says concerns about the health of the Chinese economy and the end of the US summer driving season have the potential to limit further increases.
He also pointed to the recent intervention by the Competition and Markets Authority, which meant that the increases were not as large as they could have been.
Williams adds: “While the increase is clearly bad news for drivers, it could have been much worse if the biggest retailers hadn’t allowed their inflated margins from earlier in the year to return to more normal levels as fuel costs rose as fuel prices rose. Wholesale”.
‘Wholesale costs for both gasoline and diesel began to rise in late July as oil hit $85.
‘Although the price per barrel remained at that level throughout August, retailers had no choice but to pass the increased costs on to pumps.
‘However, fortunately for drivers, they are clearly influenced by the CMA research, as margins are suddenly back closer to their long-term averages.
‘It seems they used the increase in wholesale prices to subtly cover their tracks; after all, large reductions in pumps soon after the CMA findings were announced might have been too obvious a move.
‘All we can hope is that this move by many large retailers towards fairer prices in stores will continue when wholesale costs come down again. Only time will tell.’
The three cheapest regions in terms of petrol are Northern Ireland, the North East and the North West.
The highest prices are in the South East, where fuel costs 4 pence per liter more than in Northern Ireland. The next highest prices are in London and the East.
In the case of gasoline, the August price rise was only surpassed in March 2022 (11.61 p.), May 2022 (11.15 p.) and June 2022 (16.59 p.), after the Russian invasion of Ukraine, and October 2021 (7.43 p.).
The increase in diesel was also surpassed in March 2022 (22.06 p), June 2022 (15.62 p) and October 2022 (10.14 p), as well as in October 2021 (8.16 p) and May 2008 (8.43p), shortly before oil arrived. its record price of $144 a barrel.
