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Fuel prices hit a huge 18-month high

6th Jan 17 9:58 am

Oil prices are double what they were a year ago…

The price of petrol and diesel has a hit a staggering 18 month high, December alone saw a price increase of three pence a litre.

The RAC said at the end of the month the price of unleaded petrol sat at 117.23p, diesel reached the cost of 119.63p.

Opec announced production cuts which has led to the wholesale price of fuel going up by a significant amount.

Brent Crude saw a jump of 10 per cent on the 30 November, this came on the same day the cartel announced 1.2 million barrels a day.

Oil prices are now double what they were just one year ago, prices rose from a minimal $27.88 in January 2016 to more than a huge $55 this month.

The fall in the pound since the Brexit vote has taken effect on the cost of oil due to the fact its priced in dollars.

The RAC expect the price of oil to rise even further over the next few weeks. Unleaded could cost a further 118p per litre and diesel could be going up to 121p.

Simon Williams, a fuel spokesperson for the RAC, said: “So far the price rises we’ve seen are purely down to the announcement at the end of November that Opec and non-Opec countries would be cutting oil production this month,”

“Everything now depends on the strength of the deal and each country sticking to the agreed production levels. Russia will be of particular interest as it is currently producing at near record levels.”

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