UK petrol prices rise for first time in seven months by 1p a litre

Despite motorists enjoying falling unleaded petrol prices since July 2015 and amid a drop in wholesale prices of 2p per litre, the average price of petrol in the UK went up in February 2016 for the first time in seven months.

Motoring group the RAC said the price of unleaded has gone up by 0.66p a litre, to a UK average of 101.93p while diesel has risen by one pence per litre at the pumps to 101.18p a litre.

The reasons for the higher prices were oil prices bouncing back from less than $30 a barrel to nearly $36 plus a weaker pound against the dollar.

However prices at the pumps are expected to dip again by Easter.

RAC spokesman Simon Williams said that forecourt prices were relatively stable, especially given the slump in the sterling as well as the suggestions that there could be cuts in oil production.

"While it's disappointing for motorists that the average price of petrol has gone up for the first time in seven months, the supermarkets have held their prices and the wholesale price of unleaded is still low enough to keep petrol under £1 a litre at their pumps."

Motorists will be eagerly awaiting whether Chancellor George Osborne will increase fuel duty in the Budget on 16 March, having frozen the tax last year at 57.95p a litre.