Fuel costs head for all-time high

Fuel costs for motorists look likely to rise to new highs as the price of crude oil soars to record levels on international markets.

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Fuel costs for motorists look likely to rise to new highs as the price of crude oil soars to record levels on international markets.

Instability in Nigeria – a major oil producer – has been blamed for the new peaks in crude prices of nearly $60 (£33) a barrel. Islamic militants recently released six Shell employees they had kidnapped, but many countries, including the UK, have closed their consulates in the Nigerian city of Lagos in response to threats of more action.

Prices rose to record levels on Monday and Tuesday with many industry pundits predicting they will soon breach the $60 threshold for the first time in history.

Increases in crude oil prices have a direct effect on the prices motorists pay at the pump, so costs look set to rise above April’s all-time high of 86p per litre for petrol and 90p per litre for diesel recorded by the AA Motoring Trust in its monthly market analysis.

The trust’s last analysis for June said average prices for a litre of fuel stand at 85.6p for petrol and 89.7p for diesel.

Whatcar.com editor Iain Reid said: ‘Pump prices vary from forecourt to forecourt, even within a small area, so don’t assume that you’re getting the best deal.

‘Even apparently small savings of 2p or 3p per litre add up over the year. Supermarkets often have the cheapest fuel, so shop around and you could cut hundreds of pounds a year from your motoring bills.’