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.
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