Weakened pound partly to blame for rising fuel prices
- Credit: PA
RAC blames massive fuel price rise on weakening pound and increased oil prices.
A weakening pound and the rising cost of crude oil has led to the largest diesel price rise since May 2008, according to the RAC's monthly Fuel Watch report.
At the end of October, the average litre of diesel cost 118.65p – a 5.17p increase on the October 1 price.
Petrol prices also rose sharply last month, with a 4.39p per litre increase leading to an average price of 116.73p and signifying the largest price hike since February 2013.
The average price for both fuels now stand at their highest levels since July 2015.
RAC fuel spokesman Simon Williams said the rising oil prices and a weakening of the pound were to blame for the increased pump prices.
'October 2016 was a historic month for UK pump prices but – sadly for motorists – for all the wrong reasons,' he said.
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'The effects of the weak pound have really been felt on the wholesale market, and this, combined with an oil price at nearly double its lowest level in 2016, has put significant upward pressure on wholesale fuel prices. Retailers have had no choice but to reflect these dramatic increases in the prices they charge at the pumps.'
However, Mr Williams was optimistic that November's prices may level out or even fall.
'There are some indications that November might not shape up so badly,' he said.
'OPEC, which represents some of the world's biggest oil producers, recently agreed in principle a cut in production. This would mark a move away from the over-production strategy that they have employed for so long, and mere talk of a cut has been enough to force oil prices higher. But a final deal is still to be agreed at an OPEC meeting at the end of this month and, with some analysts suggesting a deal might yet stall, this leaves open the prospect oil prices might stabilise or even fall before the end of the year.'