A huge cut to oil production could drive up the price of petrol once again, the RAC has warned motorists.
A deal agreed between Russia and members of the Organisation of the Petroleum Exporting Countries (Opec) confirmed that oil production will be slashed by two million barrels per day. This is the biggest cut by the group since the peak of the Covid pandemic back in 2020.
According to the latest data from RAC, the average price of unleaded petrol is at 162.43p a litre while diesel is averaging 180.28p a litre. Oil prices had already shot up this week in anticipation of production being reduced, raising concerns that the price of petrol will be affected, The Mirror reports .
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An RAC spokesman said that the wholesale cost of fuel would “inevitably” increase due to the impact of reduced oil production. Simon Williams said: “The question is when, and to what extent, retailers choose to pass these increased costs on at their forecourts.”
He added: “Despite three straight months of pump prices coming down, we believe that in many cases drivers are being charged more to fill up today than they should be based on average wholesale prices over the last few weeks.” The news comes after drivers have already faced paying more at the pumps this year.
The RAC said last month that motorists were getting a “raw deal” for their petrol despite record price drops on the wholesale cost of fuel. A recent study by the roadside assistance company found that drivers were being denied a further 10p cut in petrol prices due to the major retailers hiking profit margins.
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