- Sharp Increase in Gasoline Prices in August
- Diesel Prices Also Surge
- Factors Influencing Price Hikes and Regional Variations
The price of a gallon of gasoline increased by nearly 7 pence per liter in August, signifying the fifth largest monthly increase in the past 23 years.
According to RAC Fuel Watch, diesel increased by 8p per litre, the sixth largest increase.
The average price of unleaded at the end of August was 152.25 pence, up 6.68 pence from 145.57 pence at the beginning of the month, adding nearly £4 to a tank.
Diesel prices increased from 146.36p to 154.37p.
Since the beginning of July, prices have risen nearly $12 to $86.86 per barrel as a result of OPEC+, a group of oil producers often referred to as a ‘cartel’, reducing production.
In turn, this has led to an increase in the wholesale price of petroleum, which has been passed on to drivers on the forecourt.
Simon Williams, spokesman for the RAC’s petroleum division, remarked, “August was a rude awakening for motorists, who had grown accustomed to much lower prices than last summer’s record highs.”
‘Seeing £4 or more added to the cost of a tank in a matter of weeks due to a pump price increase of 6-7p a liter is galling, especially for those who drive a lot of miles or an outdated, less fuel-efficient vehicle.’
Concerns about the health of the Chinese economy and the conclusion of the summer driving season in the United States, according to the RAC, have the potential to limit further price increases.
A recent intervention by the Competition and Markets Authority meant that price increases were not as significant as they might have been.
Mr. Williams adds, “While the increase is bad news for motorists, it could have been much worse if the largest retailers had not allowed their inflated margins from earlier in the year to return to more normal levels as wholesale fuel prices rose.”
Late in July, wholesale prices for both petrol and diesel began to rise in response to the $85.
Throughout August, retailers had to pass on their higher prices at the pump due to the barrel price.
‘Fortunately for drivers, however, the CMA’s investigation has had an effect as, all of a sudden, margins have returned to their longer-term averages.
‘It appears they used the wholesale price increase to conceal their tracks; after all, drastic price cuts at the pumps shortly after the CMA’s findings were released would have been a far too obvious move.
“All we can hope for is that this shift by several large retailers back to equitable forecourt pricing will continue when wholesale prices drop again. Time alone will tell.
The three regions with the cheapest fuel prices are Northern Ireland, the North East, and the North West.
Fuel is 4 pence per liter more expensive in the South East than it is in Northern Ireland. The regions with the next-highest prices are London and the East.
Only March 2022 (11.61p), May 2022 (11.15p), and June 2022 (16.59p), after Russia invaded Ukraine, and October 2021 (7.43p) exceeded August’s price increase for petrol.
In addition to March 2022 (22.06p), June 2022 (15.62p), and October 2022 (10.14p), March 2022 (22.06p), June 2022 (15.62p), and October 2022 (10.14p) also surpassed diesel’s increase, as did October 2021 (8.16p) and May 2008 (8.43p), shortly before oil’s record high price of $144 per barrel.
