Petrol prices reach new high for the first time since january

Written by Henrik Rothen

Aug.22 - 2023 9:07 AM CET

Petrol prices reach new high for the first time since january

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The UK has witnessed a significant rise in petrol prices, reaching 150.51p a litre for the first time since early January. Diesel prices have also increased to 152.41p a litre, according to the AA.

This increase comes despite the ongoing scrutiny of fuel prices amidst the cost of living crisis. The AA, a motoring group, recently accused supermarkets of overcharging customers in rural areas for fuel.

Global production cuts have led to a steady rise in oil prices in recent months, with Brent crude reaching $85.66 (£67.24) a barrel on Monday. The increase in wholesale costs seems to have peaked for now, but the effects are still being felt at the pumps.

Luke Bosdet, the AA's spokesperson on pump prices, stated that it's still possible to find fuel stations offering fuel at 4p-5p a litre cheaper than most, but the challenge is knowing where to find them.

In July, the Competition and Markets Authority noted that pump prices had risen since 2019 due to traditional price leaders competing less aggressively. Supermarkets have only slightly reduced prices over the past month compared to company-branded retailers, while diesel costs have increased by a similar amount.

Asda recently started publishing fuel prices online, becoming the first retailer to do so after questions arose about profit margins at the pump. However, energy secretary Grant Shapps withdrew plans for a law to enforce price transparency, opting instead for a voluntary comparison scheme.

Bosdet mentioned that the voluntary scheme is expected to be operational soon, but the question remains how many retailer brands will participate.

In related news, European gas prices surged by nearly a fifth as Australian workers prepared for potential strike action if no deal is reached in pay talks on Wednesday. The dispute could lead to industrial action if plant operator Woodside Energy does not make a suitable offer, unions warned.

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