Petrol Prices Rise as we Enter 2017
dated 04th Jan 2017
As 2017 gets underway, it’s slightly depressing to have to report that UK drivers are now paying more for a litre of fuel than they have for the past two years. At the time of writing, the average price of a litre of unleaded stands at 117.7 pence per litre, with diesel at 120.3 pence per litre.
It now costs in excess of £8 more to fill an average car than it did as we entered 2016 – not great news for those with miles to cover when the realities of the seasonal spending are beginning to hit home.
Unfortunately, circumstances also seem to suggest that prices will rise further. A previously-agreed oil production cut has just started to kick in, pushing the oil price upwards across the world. As things stand, crude oil costs just under $56 per barrel, with some pundits predicting it could hit $60 soon.
This is clearly bad news for motorists. Exactly how bad things will get in the short term is, of course, a rather subjective call, but many press reports point to us seeing unleaded at 125 or even 130 pence per litre by the end of the month. This is in line with predictions we made as last year drew to a close.
Reasons for Positivity?
So after that rather grim start, can we offer you reasons to hope for change?
Well, the first thing to point out is that while fuel prices are up, we’re not facing the kind of scenario we had when the calendar flicked over to 2012, when per-litre costs were well on their way to over 140 pence. Thankfully there’s nothing to indicate that similar is on the cards.
In fact, some reports are even beginning to speculate that an oil price “correction” could be on its way, making this current price bounce a very short-lived thing. With Donald Trump about to be inaugurated and likely to do much to boost American oil production, it may not actually be that long until we’re talking about an oil glut all over again!
IMAGE CREDIT: Pixabay