Pump prices could rise to 120ppl following the OPEC meeting in Vienna and news that production will be cut by 1.2 million barrels a day. City analysts estimate the decision will see Brent Crude heading towards US$55/barrel.
Brian Madderson, chairman of the Petrol Retailers Association (PRA) said: “This producer’s accord could push pump prices up to 120ppl very quickly and was one of the reasons we argued for a duty cut of 3ppl in the Autumn Statement.
“I am afraid the Chancellor was just too timid and missed a great opportunity to help consumers and businesses going forward into 2017.
“With wholesale costs rebounding by nearly 2ppl in the past two weeks, we should expect further increases next month just as the festive driving season and Christmas online deliveries get into full swing. This OPEC announcement will be welcomed by the producers - but is not good news for the UK economy and inflation.”