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Diesel Prices Continue To Rise

Diesel Prices Continue To Rise

The price of diesel rose for a fourth consecutive month in October, rising a total of 0.59p according to RAC Fuel Watch, from 120.21ppl to 120.80ppl. 

During this time the price of petrol decreased by around 0.67ppl, however a large price hike is predicted due to oil prices rising above $60 a barrel for the first time in 2 years. 

RAC fuel spokesman Simon Williams stated: “At the start of October there was a 6p saving in the wholesale price of unleaded which retailers eventually passed on to motorists in pump price reductions. This month, however, the situation is reversed and the petrol wholesale price has gone up by 4p.

“Inevitably, this increase will be passed on to motorists on the forecourt far more quickly than the cuts were made last month, but that is unfortunately the nature of ‘big’ fuel retailing: pass on wholesale rises quickly and cling on to savings for as long as possible.

“Motorists may yet be spared from large pump prices if the United States takes advantage of the higher oil price to bring more fracking rigs online as this will bring more product on to the market, no doubt easing the barrel price.

“The US is already exporting two million barrels a day when not so long ago it was a net importer of oil. OPEC, the Organisation of the Petroleum Exporting Countries, is unlikely to welcome this as it is doing its best to limit supply to make the oil price go up.

“Unfortunately for motorists, a return to the OPEC oversupply strategy that caused the low pump prices of early 2016 doesn’t seem likely.

“Eyes will also switch to the Chancellor who delivers his Budget this month, and with higher wholesale costs filtering down to the forecourts, the last thing they’ll want to see is an increase in fuel duty. We urge the Chancellor to resist this and leave the rate unchanged.”

A great way to avoid the volatility of pump pricing for your fleet is to use fuel cards that offer one weekly set fuel price for both petrol and diesel - such as the Texaco FastFuel Card. Find out more here

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