Drivers hit with one of highest monthly increases in fuel prices in more than 20 years

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Drivers already struggling with the cost-of-living crisis were hit hard by one of the biggest monthly fuel price rises in more than 20 years.The RAC said the 7p per litre spike in the average cost of petrol last month was the fifth largest monthly increase in 23 years.The 8p per litre hike in diesel was the sixth largest over the same period.The RAC said rising pump prices are being caused by an increase in the cost of oil, which has gone up by nearly 12 US dollars a barrel since the start of July to nearly $87 (£69) due to producing group Opec+ reducing supply.This led to the wholesale cost of fuel – what retailers pay – going up, which has been passed on to drivers at forecourts.RAC fuel spokesman Simon Williams said: “August was a big shock to drivers as they had grown used to seeing far lower prices than last summer’s record highs.“Seeing £4 or more go on to the cost of a tank in the space of just a few weeks from a pump price rise of 6-7p a litre is galling, particularly for those who drive lots of miles or run an older, less fuel-efficient car.“While the increase is clearly bad news for drivers, it could have been far worse had the biggest retailers not let their inflated margins from earlier in the year return to more normal levels as wholesale fuel costs went up.“All we can hope is that this move by many big retailers back to fairer forecourt pricing remains when wholesale costs go down again.

Only time will tell.” Fuel retailers are currently under scrutiny for their pricing practices.Did you know you can keep up to date with the latest news by signing up to our daily newsletter?We send a morning and lunchtime newsletter covering the latest headlines every day.We also send coronavirus updates at 5pm on weekdays,