Petrol is up by 6p a litre since the beginning of the year
February 27, 2013
Petrol prices in the United Kingdom have gone up by over 6p a litre since the beginning of this year. After rising by over 5p in a month, average prices for petrol in the United Kingdom has rose a further 1p in the last week. Speculation in the stock market and a fall in the value of a pound are said to be some of the reasons for this. 

Diesel has also risen from 140.32p per litre to 145.10p a litre, a 4.78p increase. If you go back to the beginning of the year in January, when the cost for a litre of petrol was around 132.08p, the price increase is 6.24p altogether. 

According to statistics produced by the AA, this now means that it costs £3.12 extra to fill a 50 litre petrol tank, whilst a 70 litre tank such as in the Ford Mondeo has risen by £4.37. This rise apparently means for a two car family, it will cost an extra £13.25 to fill up each month. 

The AA have put the blame of this surge on speculators on the stock market, who have apparently driven up wholesale values of petrol from $990 per tonne to $1,100, which therefore weakens the value of a pound. The AA have exclaimed that the worst is still yet to come, though since a wholesale rise would be equivalent to an additional 7.9p for every litre, which would equal a 9.5p increase per litre once you have added the VAT. 

Usually the prices that people pay at pumps for fuel, runs behind wholesale prices by around 2 weeks. Though with the 1p increase over just the past week, it appears that the speed of the prices at pumps is getting much faster. Obviously this would appear like rather good news for petrol retailers however the figures that were produced recently showed that United Kingdom petrol sales actually fell to their lowest in 23 years, this January. This is said to be accounted for partially by the snow, though this weather disruption hasn't appeared to be anywhere near as bad as 2010 and fuel sales were still a lot higher. 

This obviously indicates that Motorists in the UK are really feeling the strain of ever rising fuel prices and the AA have therefore urged the Government to start reconsidering the rise that is planned for September of this year. 

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