Motorists face yet more misery at the pumps as petrol and diesel costs have both risen in July. After a month of respite in June when prices generally fell, petrol has risen by an average of just over 1.5 pence per litre, with diesel also up by around 1p.
Additionally, concerns over the falling value of the pound fuelled by Brexit uncertainty and worldwide economic issues, means that drivers could soon face even more hikes at the pump.
During July, the pound dropped in value by almost three percent compared to the dollar, and the ensuing hike in petrol prices means that average costs of unleaded petrol and diesel in the UK have now risen to 129.2 and 131.95 pence per litre, respectively.
A tank of petrol therefore now costs approximately £71 on average, with an equivalent tank of diesel costing just over £72.50. Price rises have been more noticeable at the major supermarkets, with Asda, Tesco, Sainsburys and Morrisons all increasing prices during July 2019 – the average rise on the supermarket forecourts was around 1.88p per litre of unleaded fuel and 1.64p per litre of diesel.
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One of the main reasons for the price hikes was the wholesale costs of fuel, with a barrel of oil rising to over $67.40 on July 10th and ending the month at just a fraction under 64 dollars. Combined with the weakening pound, motorists of new and used cars are in for a bumpy ride, especially if the pound continues to drop in value throughout the year ahead.
Another factor which may come into play in the very near future is the uncertainty over the supply of oil through the Strait of Hormuz. A spate of tanker hijackings and escalating tensions between Iran, the US and the UK will almost certainly not help the global uncertainty over the demand for oil. Around thirty percent of all the world’s tanker-supplied oil passes through these currently troubled waters.
UK Motorists, along with the motor trade continue to juggle the ongoing motoring challenges. Whether it’s new government emission targets, rules and demands, or shopping around online to seek out the best deals to help keep motor trade insurance premiums to a minimum.