Price of diesel set to increase

Motoring and Travel

Updated on 11 January 2012 | 10 Comments

The Retail Motor Industry Federation forecasts higher wholesale prices will be passed on at the pumps very soon.

A motoring industry body is warning that the cost of diesel is set to rocket in the next few weeks due to high wholesale costs.

The Retail Motor Industry Federation (RMI) has been monitoring the wholesale price of both diesel and petrol over the Christmas and New Year period. It says that diesel increased by 4.5p per litre and unleaded petrol by up to 5p per litre.

The RMI says this could push the cost of diesel at the pumps over last May’s record high of 143p per litre and possibly as high as 145p per litre.

It says that the Christmas break meant that retailers haven’t had time to factor in the increases at the pump yet but they are likely to from this weekend.

The RMI says prices are rising due to growing tensions between Iran and the West, a freeze in production at four refineries and companies holding low stock due to cash flow problems.

The average price of petrol had fallen to its lowest level for nine months by mid-December, according to the AA. But diesel prices were creeping up for most of 2011  

So, despite the Government scrapping the fuel duty rise planned for January, it looks like we’re set for more pain at the pumps this year.

More: How to find the cheapest diesel and petrol prices | Six costly motoring mistakes

For the latest news and comment on the stories that affect your money, follow us on Twitter

Comments

Be the first to comment

Do you want to comment on this article? You need to be signed in for this feature

Copyright © lovemoney.com All rights reserved.

 

loveMONEY.com Financial Services Limited is authorised and regulated by the Financial Conduct Authority (FCA) with Firm Reference Number (FRN): 479153.

loveMONEY.com is a company registered in England & Wales (Company Number: 7406028) with its registered address at First Floor Ridgeland House, 15 Carfax, Horsham, West Sussex, RH12 1DY, United Kingdom. loveMONEY.com Limited operates under the trading name of loveMONEY.com Financial Services Limited. We operate as a credit broker for consumer credit and do not lend directly. Our company maintains relationships with various affiliates and lenders, which we may promote within our editorial content in emails and on featured partner pages through affiliate links. Please note, that we may receive commission payments from some of the product and service providers featured on our website. In line with Consumer Duty regulations, we assess our partners to ensure they offer fair value, are transparent, and cater to the needs of all customers, including vulnerable groups. We continuously review our practices to ensure compliance with these standards. While we make every effort to ensure the accuracy and currency of our editorial content, users should independently verify information with their chosen product or service provider. This can be done by reviewing the product landing page information and the terms and conditions associated with the product. If you are uncertain whether a product is suitable, we strongly recommend seeking advice from a regulated independent financial advisor before applying for the products.