Drivers across the UK are being warned to prepare for increases in petrol and diesel prices over the next week to 10 days, as filling stations begin to adjust their costs.
Last November and December, the price of Brent crude oil—a key factor in fuel costs—remained relatively stable, ranging from $71 (£58) to $75 (£61) per barrel. This stability gave hope that fuel prices would stay steady or even fall.
However, January has brought a sharp shift, with Brent crude oil climbing to $81 (£66) per barrel earlier this week. Adding to the pressure, the US dollar has strengthened against the pound, dropping from $1.25 (£1.02) to $1.22 (£1).
Currently, the average price for a litre of petrol is 137p, up nearly one penny since the start of the year. Diesel prices are seeing even sharper increases, with wholesale costs rising by nearly four pence per litre.
Experts from PetrolPrices warn that pump prices are "likely" to rise in the coming days, as there’s typically a lag between wholesale price hikes and the adjustments seen at the forecourt.
"While some stations may temporarily absorb these cost increases, it’s likely that pump prices, especially for diesel, will rise over the next 7–10 days," PetrolPrices explained.
Data shows that since January began, four times as many filling stations have increased unleaded petrol prices compared to those that lowered them. The situation for diesel is even more pronounced, with seven times as many stations raising prices as lowering them.
PetrolPrices also noted increasing variation in pricing between stations. This is partly due to the different times stations react to rising wholesale costs, leading to significant local price differences.
Supermarkets, which often offer more competitive fuel prices, have responded differently. Tesco currently offers the cheapest diesel among major retailers, despite starting the year as the most expensive. Asda has raised its diesel prices by an average of 0.6 pence per litre, making it the second most expensive supermarket for diesel.
Morrisons continues to offer the cheapest prices for unleaded E10 petrol, although the gap between supermarkets has narrowed significantly. At the start of the year, Morrisons was half a penny cheaper per litre than Tesco; now, the difference is less than 0.2 pence.
In response to rising prices, Labour plans to launch a Fuel Finder tool to help drivers locate the cheapest fuel in their area. Expected to be introduced before the end of the year, Budget documents suggest the tool could save motorists between one and six pence per litre.
With prices on the rise, drivers are urged to monitor costs and take advantage of loyalty schemes and vouchers where possible.
