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Fuel Prices Reach 3 Year High

Prices of both petrol and diesel rose by over 2ppl during November causing the price of fuel to reach a 3 year high according to the RAC. Petrol rose from 118.43ppl to 120.78ppl and diesel from 120.96ppl to 123.18ppl.

Pump prices have risen as a result of increasing wholesale oil costs to above $60 a barrel through November. However, it has been stated that prices would have been even higher had the pound not appreciated by 2% against the dollar in recent weeks.

November 30th also saw OPEC meet to discuss levels of oil production amongst member nations. The current restriction on production to keep prices higher was supposed to end in March, however the current cap is expected to be extended throughout 2018.

RAC fuel spokesman Simon Williams commented: ““The increased barrel price [the cuts are] designed to create may also work against the group as it makes fracking for oil in the US more financially viable, which in turn may lead to America increasing its production and filling the gap from the cuts. If this happens it should mean forecourt prices won’t go shooting up”.