Experts warn diesel prices could hit 130ppl this year

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Experts warn diesel prices could hit 130ppl this year

Industry experts are warning drivers of continued increases in fuel prices in the UK this year, Fleet News reports.

As a result of reductions in global fuel production and political uncertainty, diesel prices at the pump are expected to increase to between 120p and 130p a litre.

The average price of petrol currently stands at around 117p while the average price of diesel is 119p.

Uncertainty surrounding the triggering of Article 50 before the end of March, OPEC's decision to cut oil production, and the impact of President-elect Trump being voted in has resulted in the AA and Petrolprices.com predicting the price jumps.

From the start of this month, OPEC, an inter-governmental organisation of 13 nations based across the Middle East, Africa and South America, will reduce production by 1.2 million barrels a day.

The resulting scarcity of oil will drive up the price per barrel, making it more expensive at the pump.

At the time of writing, the price for a barrel of oil was $53.30 (£43.39), but the AA's fuel spokesman, Luke Bosdet, predicts this will rise to $60 (approximately £48). A $10 increase in the cost of a barrel of oil can push the pump price up by around 5-6p.

While industry experts might be warning of a price rise, managing director of Petrolprices.com, Jason Lloyd, and the RAC do not expect prices to reach the highs of 148ppl as they did during the oil strikes in 2012.

The RAC's fuel spokesman, Simon Williams, also noted that OPEC's cut will enable the US to put more fracking rigs back into action. This could lead to OPEC reversing its decision, and increasing production again.

"If that happens, fuel pump prices may not rise as sharply as some are predicting," Williams added.

Are you prepared for a rise in fuel prices?

Industry experts warn cost of #diesel could reach 130ppl this year

 

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