Fuel prices are set to continue rising into the summer the PRA chairman Brian Madderson has warned.
He said the increasing cost of oil, with Brent crude oil having risen 80% since January of this year, was not yet fully reflected in prices at the pumps.
Commenting on reports that Brent Crude Oil was close to touching $50 per barrel, Madderson said: “It is remarkable that the increase in wholesale fuel prices have not yet fully reflected this year’s fast recovery in crude oil. As it currently stands, crude oil prices have not yet been factored into the pump price.”
Despite the increase in the cost of crude oil, UK fuel prices have only risen by 6%, from 102.70ppl to 109.00ppl to date. When looking at future forecasts of petrol prices, Madderson said: “UK pricing is now heading towards 115ppl for the summer. This is due to high demand, increased by the start of the ‘driving season’ in North America and a decline in crude oil stocks.
“With the impending EU Referendum and City analysts worrying that the UK’s economic recovery is running out of steam, this new pressure on household budgets and businesses is disappointing.”