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Price of diesel set to increase

Simon Ward
by Lovemoney Staff Simon Ward on 10 January 2012  |  Comments 10 comments

The Retail Motor Industry Federation forecasts higher wholesale prices will be passed on at the pumps very soon.

Price of diesel set to increase

A motoring industry body is warning that the cost of diesel is set to rocket in the next few weeks due to high wholesale costs.

The Retail Motor Industry Federation (RMI) has been monitoring the wholesale price of both diesel and petrol over the Christmas and New Year period. It says that diesel increased by 4.5p per litre and unleaded petrol by up to 5p per litre.

The RMI says this could push the cost of diesel at the pumps over last May’s record high of 143p per litre and possibly as high as 145p per litre.

It says that the Christmas break meant that retailers haven’t had time to factor in the increases at the pump yet but they are likely to from this weekend.

The RMI says prices are rising due to growing tensions between Iran and the West, a freeze in production at four refineries and companies holding low stock due to cash flow problems.

The average price of petrol had fallen to its lowest level for nine months by mid-December, according to the AA. But diesel prices were creeping up for most of 2011  

So, despite the Government scrapping the fuel duty rise planned for January, it looks like we’re set for more pain at the pumps this year.

More: How to find the cheapest diesel and petrol prices | Six costly motoring mistakes

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Comments (10)

  • lumpycamel
    Love rating 2
    lumpycamel said

    charles125 - You do talk some rubbish. All fuels sold in the EU have to follow a directive which was set in 1998 and recently revised in 2007.This sets out a minimum standards that fuels must attain to be sold in the EU. This also helps set the motor manufacturers on how their engines are expected to perform during their lifespan. As for your additives theory, you must understand that additives are very expensive to the fuel manufacturers compared to the cost of fuel manufactured. To thin down fuel and add additives is economic suicide.

    The way that a diesel engine works means that there is only a finite amount of diesel that can be injected into the engine per stroke for the amount of air that can be taken into the engine (hence the need for turbos for diesels). To use up more fuel, the number of revs must increase and I personally have not noticed any increase in revs for the same power/speed on any of my cars.

    If this is happening to your car then I would advise you to take it to a reputable mechanic and get it checked out and a possible service. Simply having an blocked air filter would give the symptoms you're describing.

    Report on 11 January 2012  |  Love thisLove  2 loves
  • IanSmart
    Love rating 0
    IanSmart said

    Price has gone up 4p in last week round here, definitely not a scare story.

    Report on 19 January 2012  |  Love thisLove  0 loves

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