The average prices of petrol and diesel rose for the second consecutive month, according to RAC Fuel Watch data for July, but it reports they could be on the way down again within days.
Unleaded petrol rose 3.21ppl from 111.06ppl to 114.27ppl, while diesel went up by 2.95ppl, from 115.09ppl to 118.04ppl.
The price of oil was stable throughout July finishing at $42.95 a barrel, which was very similar to the beginning of the month. The wholesale price of petrol fell 2ppl across the month to 84.66ppl, and the RAC said this meant retailers should be reducing their pump prices slightly in the next week or two. The wholesale price of diesel fell by a much smaller amount – 0.22ppl – to 87.39ppl.
Increases at the big four supermarkets were marginally above the average at 3.43ppl for unleaded petrol and 3.33ppl for diesel.
Asda offered the cheapest supermarket unleaded petrol at the end of July at 108.63p (up 2ppl) with the others all averaging just over 109ppl. It also had the lowest price diesel at 112.68ppl ahead of Sainsbury’s on 113.39ppl – Morrisons and Tesco were both at 114ppl.
RAC fuel spokesman Simon Williams said: “July was another bad month for drivers with a 3ppl rise in the price of fuel. This means petrol is 7ppl more expensive than it was at the end of May and diesel is 6ppl more.
“The higher prices at the pump have been driven by the cost of oil increasing steadily to around $42 a barrel from a low of $13.21 in April. But drivers may well be given some respite as oil producers are planning on ramping up production despite the risk of renewed lockdowns around the world.
“This could easily lead to supply outstripping demand and therefore a reduction on the forecourts of the UK. As it there is some scope for retailers to already be reducing their prices. If they play fair with drivers we ought to see 2ppl come off the price of unleaded and nearer 4ppl come off diesel.”