Price of petrol up 8p per litre since start of year as drivers face 'tough' 2024

There has been a surge in petrol prices since the start of 2024

Motorists are feeling the pinch as petrol prices have soared by nearly 8p per litre since the beginning of the year.

In just the past week, there’s been a 1.6p surge, pushing the average cost of petrol in the UK to a five-month peak of 148.5p per litre, Government statistics reveal. This marks a significant jump from the 140.8p seen at the outset of the year, and it’s the steepest weekly increase since the heights of August 2023.

Diesel drivers are also being hit in the pocket with average prices at the pump reaching 157.5p a figure not witnessed since the previous November. RAC fuel price expert Simon Williams lamented: “This year is proving to be another tough one for drivers.”

He warned: “Both petrol and diesel are now the most expensive they’ve been since November last year, which is bad for households, businesses and the economy, especially as we know there is a close link between fuel prices and inflation.” Mr Williams also highlighted geopolitical concerns, stating: “With increased tensions in the Middle East, the cost of oil is only likely to go up which could push petrol well above 150p a litre.”

He added: “While diesel is getting close to 160p, this is purely down to retailers taking much bigger margins as there’s only been a few pence between the wholesale prices of both fuels since mid-March.” The RAC spokesperson was critical of widening profit margins, saying: “We find it hard to believe that a margin of 13p a litre on diesel compared to the long-term average of 8p is fair.”

He pointedout that the Competition and Markets Authority, having recently voiced concerns over high retailer margins, is likely to take note: “This surely won’t go unnoticed by the Competition and Markets Authority which only two weeks ago expressed its concern about higher retailer margins.”

Luke Bosdet, the fuel price spokesperson for the AA, said: “Pump prices are climbing towards the 150p-a-litre average that drivers fear. It is a psychological shock that shouts out from the price boards each time motorists drive past.”

Highlighting future concerns, he added: “The worst part is that petrol prices will be spurred on by the inflationary pressures of higher demand as the US motoring season looms. “The early part of the summer could be a tough time for UK motorists.”