Forecourt fuel prices rose at some of the most rapid rates in over two decades during August, as rising wholesale costs from the likes of production cuts hit drivers.
A near-7p and 8p rise in the prices of petrol and diesel respectively marked the fifth and sixth-largest monthly hikes in 23 years, automotive services firm RAC said on Monday.
Higher wholesale oil prices prompted by OPEC+ cuts earlier this year largely weighed in, RAC said, as retailers work on tighter margins thanks to a probe by the Competition and Markets Authority (CMA) following stubbornly high prices at pumps previously.
“Retailers had no choice but to pass on their increased costs at the pumps,” RAC spokesman Simon Williams said.
“Fortunately for drivers though, they have clearly been influenced by the CMA’s investigation as, all of a sudden, margins are once again closer to their longer-term averages.”
Petrol cost an average of 152.25p per litre at the month-end, while diesel sat at 154.37p, adding an estimated £4 extra per tank in a matter of weeks, RAC estimated.
“August was a big shock to drivers as they had grown used to seeing far lower prices than last summer’s record highs,” Williams added.
“While the increase is clearly bad news for drivers, it could have been far worse had the biggest retailers not let their inflated margins from earlier in the year return to more normal levels as wholesale fuel costs went up.”