Fuel prices have risen consecutively since October, adding approximately £3 to fill-ups. Increased oil prices and diminished market competition drive costs.
Oil prices increased in mid-January. A barrel cost over $80 for days, and a weaker pound also raised fuel costs as retailers paid more for wholesale fuel.
Petrol averaged 139.0p per litre at January’s end, while diesel cost 145.7p per litre then. Simon Williams commented on rising prices, and filling up costs roughly £3 more now compared to October of last year.
He hopes prices will drop soon, yet oil supply impacts fuel costs. Analysts predict lower oil prices, while the CMA said drivers overpaid last year because fuel margins remained higher than usual.
They saw weakened fuel market competition, and supermarket fuel margins increased from 7% to 8.1% by August. Other retailers also increased their margin; it went from 7.8% to 10.2%.
The CMA showed real concern as the increased margin was a problem. They felt competition was weak still, which hurt the road fuel market.
Dan Turnbull spoke about high fuel margins, stating drivers paid too much. He worried about weak market competition as the high prices remain.
He welcomed government actions, and measures will help drivers find savings. More competition will further assist them, meaning drivers will save more fuel and have more money to spend.
