Are fuel prices about to start falling?

I’m sure you’ve noticed that petrol and diesel prices have risen recently. What’s happened is that the rising price of oil and the weaker pound have pushed up the cost of petrol and diesel for UK motorists.

Filling up with petrol

According to the AA, the average price of a litre of unleaded rose by 3.3p to 115.1p in October. Diesel rose by 3.8p to 116.9p.

Interestingly, the RAC takes a slightly different view on fuel prices in October. Its data shows that unleaded petrol rose by 4.37p per litre to an average of 116.73p last month, while diesel was up 5.17p to 118.65p.

What’s clear from both sets of figures is that the trend seems to be up. My view, as an enthusiastic follower of the oil market, is that the price of oil is likely to rise further in 2017. We could see big increases, if Russia and the big Middle Eastern oil producers manage to agree on production cuts at the end of this month.

Time to fill up?

The RAC operates a Fuel Watch service which is rather useful. It provides the latest average UK petrol and diesel prices plus a guide to whether these prices are expected to rise or fall.

RAC Fuel Watch 20 Nov 2016
Source: RAC website (http://www.rac.co.uk/drive/advice/fuel-watch/)

On the 20th November, when Fuel Watch was last updated, the RAC’s view was that both petrol and diesel prices were:

… very likely to come down [over the next two weeks]

Make of this what you will. The RAC doesn’t provide much information about the methodology behind this guidance. I’ve no idea how reliable it has been historically.

But if you see fuel prices fall over the next week or so, it might make sense to top up your tank.

Of course, you can always find the cheapest petrol and diesel in your area using our Petrol Prices page. Just find your location on the map and check for the cheapest price. Don’t forget to update the map with the latest prices yourself — doing this is quick, simple and FREE, but the system won’t work without your help. Thank you!

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.