This week a national motoring association in the UK, the RAC, issued a report showing that UK drivers have been pummeled by rising fuel prices, which jumped at the sharpest monthly rate last month in 23 years.
RAC Fuel Watch reported that the average price of diesel fuel jumped 8 pence (10 cents) per liter, increasing the cost of a full tank of fuel by £4.41 ($5.54) in August compared to July.
Data from the watchdog showed that gasoline soared almost 6.68 pence per liter during August as global crude prices inched up by nearly $15 per barrel over July, and hit $90 per barrel after members of the OPEC+ group instituted a series of various production cuts.
RAC spokesperson Simon Williams said, “This led to the wholesale cost of fuel – the price retailers pay – going up, which in turn has been passed on to drivers on the forecourt.”
He added, “August was a big shock to drivers as they had grown used to seeing far lower prices than last summer’s record highs.”
Crude oil prices rose to the highest levels seen since November of last year at the beginning of September, as traders expected to receive word that Saudi Arabia and Russia would extend voluntary supply cuts into October, after both had previously agreed to implement them only through September.
On Tuesday, global oil prices were trading higher. West Texas Intermediate, the US benchmark was trading above $87 per barrel, while European benchmark Brent, was trading above $90 per barrel.