Brace for £70 tank of fuel, motorists told

THE cost of filling up with petrol could hit a record £70 high within weeks, the RAC has said. Rising oil prices and the volatility of the pound as a result of Brexit negotiations, were threatening to push up pump prices.

The comments came in response to a report by investment bank JP Morgan, which warned a drop in Iranian crude exports after US sanctions in November could see oil “spike” at $90 (£68) a barrel. This, combined with potential further falls in the pound as fears of a no-deal Brexit persisted, could result in record petrol prices, the RAC said.

It comes after the price of oil hit a four-year high yesterday, surging past $82 (£62) a barrel. The average price for unleaded petrol is 129.5p a litre – £64.50 for a 50-litre tank – while diesel is 132.3p, or around £66 a tank.

But the RAC said prices could soar past the all-time high of 142p a litre, last seen in 2012. Simon Williams, of the RAC, said: “A further increase in oil prices would almost certainly mean higher prices for UK drivers. The only thing that could stop that would be a dramatic rise in the value of the pound, which has been very volatile recently, partly as a result of Brexit negotiations.”

Meanwhile government figures released yesterday found there had been no weekly increase in the price of petrol for the first time in three months, and diesel slowed to a 0.2p rise per litre.

Earlier this month, Philip Hammond, the Chancellor, warned of a review of fuel duty after analysis from 2014 showed the benefits of a duty freeze had offset all tax losses. Fuel duty has been pegged at 58p a litre since 2011.