Fuel prices hit three-year high

Petrol and diesel prices have reached their highest levels for three years.

Both fuels saw increases of more than 2p per litre during November, as rising oil prices pushed up wholesale costs. A litre of petrol reached an average of 120.78p per litre and diesel hit 123.18p per litre.

While the rising price of oil has pushed costs up, observers say that the strengthening of the pound against the US dollar has kept them in check to some extent.

The end of the month also saw the Opecagree to extend its production cut from March to the end of 2018.

RAC fuel spokesman Simon Williams said: “Even though the oil price is now consistently above $60 a barrel, the increased value of sterling against the dollar is helping to keep fuel prices down at the pumps. This is good news for motorists as it means petrol and diesel prices are unlikely to shoot up, in fact we may even see them come down very slightly in the next week or so.

“The price we will pay for fuel at the pump into 2018 very much hinges on how effective OPEC’S production cut continues to be in reducing the global glut of crude oil. ”