Fuel costs have risen by 4p-a-litre in the last month, bringing petrol and diesel costs for motorists close to levels last seen before the pandemic, according to a new report from the AA.
Both diesel and petrol prices have continued to rise, as the AA says that retailers are pushing their rates higher than usual, with forecourt prices outpacing the rise in global oil costs which have seen a recent $5 to $6-a-barrel price rise.
During the first UK lockdown, unleaded fuel dropped to below £1-a-litre, but now average unleaded prices have jumped from 114.5p-a-litre a month ago to a current price of 118.91p, according to the research.
The AA's report has compared last month's price rise in oil prices to increased average forecourt prices in the UK but claims that fuel retailers are overcharging drivers by up to 2p-a-litre in what the AA has referred to as a “lockdown bonus”.
The drop in oil prices during the first lockdown was due to various contributing factors, most notably being a massive global oversupply of oil due to motorists staying at home worldwide as COVID-19 ripped through countries worldwide, with traffic levels collapsing by 80 percent by the start of April 2020.
By May 2020, most of the major supermarket fuel retailers – Morrisons, Sainsburys and Asda – had slashed their prices to below £1-a-litre in a forecourt price war which raged on for most of the year, with independent and rurally-based fuel retailers struggling to compete.
However, oil prices have now bounced back and petrol prices have risen by over 10p-a-litre, levelling out at just under 115p per litre between August and early December, and in the last month that price has jumped even further by around 4p.
The AA's report shows that diesel also saw a comparable price hike, with the fuel now typically costing 122.22p-a-litre, up from 119.31p-a-litre a month ago and 118p in early December.
AA fuel spokesman Luke Bodset said: “With people driving fewer miles and going to fuel stations less frequently, some will have seen pump prices jump 4p-a-litre between visits. This will come as a shock.”
Keyword: UK petrol prices continue to rise jumping another 4p in a month