The fall in the value of sterling and a rise in oil prices could push the average price of petrol above 115p by tomorrow morning.
The average price of petrol across UK retailers, including supermarkets and independent sellers, reached 114.99p a litre on Sunday, according to data from Experian Catalist. Prices tumbled below 115p last August, in what motorists hoped would be a respite from sky-high fuel costs.
Arthur Renshaw, account manager for the UK and Ireland at Experian Catalist, told City A.M. the national average price was likely to move above 115p within the next few days, or possibly by the end of the week.
However, RAC fuel spokesman Simon Williams said the psychological 115p barrier would “without a shadow of a doubt” be breached tomorrow.
“Two factors have led to the recent rises in the wholesale and retail prices of both petrol and diesel. First is the increasing oil price, with a barrel of Brent crude now hovering around the $50 mark, and close to its highest price all year; second is the sharp fall in the value of the pound in the last two weeks which is making fuel, traded in dollars, more expensive for the UK to buy in,” Williams said.
“The impact at the pumps has been clear. Since the end of September, the average price of a litre of unleaded has increased by nearly 3p to 114.99p, with diesel up 3.32p to 116.66p per litre. The average petrol price will inevitably break through the 115p a litre barrier tomorrow.”
Oil prices have been buoyed by hopes Opec will next month finalise a provisional deal to cut oil output by 700,000 barrels per day.