UK petrol prices rise after Opec decides to cut oil production
Petrol prices are climbing again for the first time in three months, after the controversial decision by the Opec oil cartel and its allies to cut oil production, putting more pressure on drivers during the cost of living crisis.
Forecourt prices for petrol and diesel in the UK had been falling since early July and throughout the summer, according to motoring organisation the AA, but the trend reversed after the Opec meeting in early October.
Nearly half a penny was added to average petrol prices over the weekend, while diesel prices have also begun to rise again.
Average pump prices for petrol stood at 162.32p a litre prior to the weekend, according to the AA’s figures, but on Monday had reached 162.78p a litre.
Meanwhile, the average price of diesel has seen a greater rise, taking it from 180.45p before the weekend, to 182.17p on Monday.
“At the start of July, pump prices had set records of 191.53p a litre for petrol and 199.07p for diesel. And, although diesel saw a temporary rebound as August turned into September, drivers have enjoyed steady falls in road fuel costs throughout the summer,” said Luke Bosdet, the AA’s fuel price spokesperson.
The Opec+ group of oil-producing nations agreed to a cut in output of 2m barrels a day at their meeting on 5 October, equivalent to 2% of global supply, despite significant pressure from the US.
The Biden administration had tried to persuade oil-producing nations not to cut supplies, fearful it would push up fuel prices and add to already soaring inflation.
The group’s decision, led by Saudi Arabia and Russia, went further than analysts had predicted and put a squeeze on supplies in an already tight market.
The move also had an instant impact on the oil price, pushing the cost of Brent
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