MarketMoodz
March petrol and diesel prices surge at record pace, RAC finds
UK petrol prices jumped in March at the fastest pace on record, RAC data show. The surge adds pressure on households and business logistics as energy costs feed into inflation.
Key Takeaways
- March delivered the largest monthly jump in UK petrol prices on record, per RAC.
- Petrol up about 20p and diesel about 40p since the conflict began.
- A typical family petrol fill-up is ~£11 higher per month; a diesel tank ~£22 more.
- Average petrol price on 2 April was about 153.7p per litre and diesel about 184.2p per litre.
- Brent crude moved from roughly $73 to over $110, then near $100 by end-March, driving pump prices with a lag.
People Involved
- No specific individuals mentioned
Entities Involved
- RAC Motoring organization providing price data and analysis
- Ofgem Energy regulator overseeing price caps and energy policy
- Fuels Industry UK Industry group commenting on energy supplies and policy
- UK Government Policy maker announcing heating oil support and price cap mechanisms
MarketMoodz Analysis
Investors should view this as confirmation that energy costs remain a meaningful inflation driver in 2024–26. Oil-market volatility feeds through to petrol and diesel prices with a lag, influencing consumer spending, transport margins, and inflation expectations. The link between Brent moves and pump prices remains a key risk factor for households and businesses alike.
Historically, energy-price shocks have followed periods of oil-price surges. In March, Brent traded from about $73 to over $110 a barrel before settling near $100, a dynamic that has historically pushed UK fuel prices toward new highs during shocks like the 2022 period when petrol peaked around 191.5p/L and diesel near 199p/L. While today’s price levels are not yet at those peaks, the momentum mirrors prior episodes and underlines the vulnerability of domestic energy costs to global crude moves.
What to watch next is the trajectory of oil prices and how policy adapts: official price-cap adjustments for April and potential July changes, the impact of heating-oil subsidies (£53m) on rural households, and whether inflation and borrowing costs respond to continued energy volatility. Investors should also monitor shares of energy-related retailers and logistics firms as fuel costs influence margins and demand.
Source: Original Article
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