Petrol and Diesel Hike: Highest Oil Price Escalation since July 2015

Business - Mohit Shah - Nov 10,2016

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petrol diesel hike highest price escalation since july 2015

The price of petrol and diesel soared in the month of October, as stated by RAC, calling it the biggest monthly increase in the past three and a half years.

RAC has declared an increase in the average petrol and diesel prices by a significant margin. According to the report, the upsurge for petrol is 4.4p, increasing the per liter value to 116.7p. On the other hand, diesel price rose by 5.2p to reach 118.7p per liter. Analysts are shocked by these stats since the average price was 102p per liter for unleaded petrol and 101p for diesel during the starting months of 2016.

The fuel spokesman of the monitoring organization, Simon Williams, has targeted two main factors that are surely responsible for this oil price hike. According to Simon, the increasing crude oil value is a key issue which is directly supported by the weakening of pound after Brexit in June. He also added that, retailers are clueless and are left with “no choice” but to accelerate the prices.

The outcome is quite stressful as this oil price escalation is almost the double as compared to the lowest level which was recorded in 2016.  According to the oil price news, it would cost £64.20 for filling a typical family’s car petrol tank of 55-litre. Whereas for diesel the cost is £65.25.

RAC finds OPEC, that represents some of the world’s renowned oil producers, can stabilize the rising fuel prices. Mr. Williams told that a meeting of OPEC will be held at the end of this month regarding a decline in production.  If a deal is fixed after mutual agreement among all the major producers, then it is expected that the prices will fall before the end of this year.