Wholesale costs of diesel and unleaded petrol have seen the steepest and fastest ever recorded rise over the festive period, which could see diesel prices at fuel retailers hit new record levels in the upcoming weeks and months, RIM Petrol have reported.
Tension in relation to Iran’s relationship with the Western world, worries about EU refinery activity cutting crude oil supplies, together with Spanish oil supplier Repsol cutting production are factors said to have impacted upon prices.
Between Monday 19th December to Thursday 5th January, wholesale diesel prices increased by 4.50 pence per litre (ppl) and unleaded petrol saw rises up to 5ppl.
Consequently it is feared that these price increases will be passed on to consumers, as diesel, currently at 141ppl, will soon hit 143ppl and possibly even continue past 145ppl.
As fuel retailers have not had much time to react over the festive holiday season, prices are expected to be increased over the next few days in response to the price hikes from wholesalers, especially as independent retailers are already contending with tiny profit margins.
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