The economic climate has taken its toll on many hard working UK residents over the past few years. Often those who look to the news seeking good news discover doom and gloom with further hikes in every day essentials including motoring costs. As well as car insurance premiums and repairs, petrol has become a prominent issue with prices rising year on year as demand for fuel grows on a global scale. Unfortunately, recent research has warned that inflation is showing no sign of reducing and is likely to show a sharp increase within the foreseeable future.
The RMI Petrol Retailers’ Association (PRA) believe that an inevitable increase in petrol prices will be due to the recent rise in the price of oil. Brent Crude oil prices have increased by a significant 10% – with the current cost of each barrel £74 ($116). Furthermore most people are oblivious to the geo-political tensions that continue to exist with Syria and Iran. These countries influence much of the supply of crude oil to the western world whereby they could greatly affect the UK and global economy.
PRA’s chairman, Brian Madderson commented saying: “This is really bad news for motorists and retailers alike. The full effect of the wholesale price increase of nearly 10 pence per litre (ppl) since late June has yet to be passed on at the pumps.
“Average pricing for petrol across the UK has now risen to 136ppl and could yet return to 140ppl by the end of August.”
The demand for fuel alternatives rises as conventional fuels become too much for motorists to cope with. Either way we are likely to see fuel and other motoring costs such as insurance premiums increase further before we see any positive change.