Fuel prices rise in July – and further increases could be afoot
Petrol was up by 1.55p and diesel by nearly 1p
Fuel prices rose in July, with the cost of both diesel and petrol up as the pound lost three per cent on the dollar, latest figures reveal.
Though fuel prices fell in June, petrol was up by 1.55p and diesel by nearly 1p – though prices are still cheaper than they were at the start of the June, according to data collected by RAC Fuel Watch.
It means that the cost of refilling an average-size fuel tank of petrol is now £71.07 compared with £70.21 at the start of June. For diesel, that cost is increased by 51p to £72.57.
RAC fuel spokesman Simon Williams said: “Sadly, July saw a return to rising pump prices making the respite of June all too brief. While there were only relatively small rises in both petrol and diesel, the situation might have been far worse if the drop in the value of the pound had combined with the higher mid-month oil prices. And, of course this could still very easily prove to be the case if the pound doesn’t recover in the next few weeks.
“The price of a barrel of oil has been fluctuating between $60 and $70 since the end of May as traders can’t seem to be able to get a clear understanding of what’s happening with global demand. On the one hand there is talk of an economic slowdown in China and, on the other, concerns about supply due to the tanker hijacking issues in the Strait of Hormuz through which a third of the world’s sea-borne oil supply is shipped.
“Drivers can only hope we don’t see the nasty combination of a rising oil price and a falling pound. If we do, August could prove to be a very costly month on the UK’s roads. This could easily lead to petrol going above the 2019 high of 130.67p seen at the start of June and diesel exceeding the year’s high point of 135.54p at the end of May.”
Wholesale prices are up because of an increase in the price of oil, hitting a high of $67.41 per barrel on July 10, but falling back to $63.97 by close. In addition, the pound dropped three per cent against the dollar at the announcement of the new prime minister, reaching its lowest level against the dollar of $1.2152 on July 30 since March 2017.
